Which one of the following is a disbursement account into which funds are transferred only as needed to cover the demands for payment?
A)Master account
B)Controlled disbursement account
C)Bank controlled account
D)Investment account
E)Safety stock account

Question

Quizplus · Accepted Answer

A controlled disbursement account is designed to provide the company with greater control over the timing of its disbursements. The funds are transferred from the company's main account into the controlled disbursement account only as needed to cover the demands for payment. This helps to minimize idle balances and can also help to reduce the risk of fraud or unauthorized disbursements.

Which One of the Following Is a Disbursement Account into Which