Which of the following is a checking account that the firm sets up so that the bank agrees to automatically transfer funds from an interest-bearing account to pay off any checks presented?
A) Lockbox system
B) Concentration banking
C) Wire transfers
D) Zero-balance account

Question

Quizplus · Accepted Answer

A zero-balance account is designed for companies to maintain a balance of zero by automatically transferring funds from a master account in an amount exactly enough to cover checks presented. This allows the company to optimize the use of their cash by keeping it in interest-bearing accounts until needed.

Which of the Following Is a Checking Account That the Firm