A disbursement account for which the firm maintains no balance, transferring in funds from a master account only when needed to cover demands for payment, is called a _____ account.

Question

Quizplus · Accepted Answer

A zero-balance account is specifically designed to maintain a balance of zero by transferring only enough funds from a master account to cover checks presented or payments due, eliminating the need to keep a working balance in the account.

A Disbursement Account for Which the Firm Maintains No Balance