A disbursement account into which funds are transferred from a master account only as they are needed to cover cheques presented for payment is called a _____ account.
A)lockbox
B)cash clearing
C)ledger
D)cash concentration
E)zero-balance

Question

Quizplus · Accepted Answer

A zero-balance account is a type of disbursement account where funds are transferred from a master account only as needed to cover checks presented for payment. The key feature of this type of account is that it always maintains a zero balance, meaning funds are available only when there are checks to be cleared. This helps to maximize cash flow and minimize the amount of idle funds being held in the account.

A Disbursement Account into Which Funds Are Transferred from a Master