One advantage of zero balance accounts is an increase in disbursing float.

Question

Quizplus · Accepted Answer

Zero balance accounts allow for more efficient management of cash flow, which can lead to an increase in disbursing float. Disbursing float refers to the time between when a payment is initiated and when the funds are actually debited from the account. By having a zero balance account, companies can more easily manage cash balances and ensure that there is enough money available to cover all disbursements, which can result in a longer disbursing float.

One Advantage of Zero Balance Accounts Is an Increase in Disbursing