An account into which a firm transfers funds,usually from a master account,in an amount sufficient to cover the checks presented for payment that day is called a _____ account.

Question

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A controlled disbursement account is used by firms to manage their cash more effectively. The bank informs the firm daily of the total amount of checks presented for payment, and the firm transfers funds from a master account to the controlled disbursement account to cover those checks. This helps the firm avoid overdraft fees and ensures that it has sufficient funds to cover its obligations. Lockbox, cleanup, compensating balance, and revolving accounts are not directly related to managing daily check payments.

An Account into Which a Firm Transfers Funds,usually from a Master