Which one of the following is true concerning a controlled disbursement account?
A)The number of checks that can be disbursed on any one day is limited.
B)The bank will inform the firm of the amount that needs to be transferred on a daily basis.
C)The amount that can be disbursed on any given day is limited to the balance in the account when the bank opens in the morning.
D)The total number of checks that can be written in any one month is limited.
E)The amount of the disbursements is limited to the amount the firm has available on its bank line of credit.

Question

Quizplus · Accepted Answer

A controlled disbursement account is a type of cash management account where the bank provides the firm with information about the amount of cash that will be disbursed on a daily basis, typically early in the morning. This allows the firm to better manage its cash flow and plan for any necessary transfers or investments. The amount that can be disbursed is not limited to the balance in the account at the start of the day, but rather is based on the actual funds available in the account. The number of checks that can be written on any one day or in any one month is not necessarily limited, although there may be fees or other restrictions depending on the specific account and bank. The amount of disbursements is also not necessarily limited to the firm's available bank line of credit.

Which One of the Following Is True Concerning a Controlled