The Research Center has branch operations in three states. Each branch deals with a local bank. However, all excess funds in these branch bank accounts are transferred on a daily basis to the company's primary bank located near the home office. This routine of transferring cash to the primary bank on a regular basis is referred to as:

Question

Quizplus · Accepted Answer

The routine of transferring excess funds from branch bank accounts to the company's primary bank on a regular basis is known as cash concentration. This helps to centralize cash management and control, facilitating strategic cash disbursements, payables management, and float management. Transfer flotation is not a common term in cash management.

The Research Center Has Branch Operations in Three States