Purchase Solution

Zero Balance

Not what you're looking for?

Ask Custom Question

True/False

A zero balance account is used by firms as an effective tool of cash management to reduce the amount of idle cash a firm might otherwise keep.

Purchase this Solution
Solution Summary

This solution answers a true/false question on zero balance.

Solution Preview

True/False

A zero balance account is used by firms as an effective tool of cash management to reduce the amount of idle cash a firm might otherwise keep.

True.

In a Zero Balance Account (ZBA), a master account is set up to receive all checks coming into the system. As checks clear through the ZBA, funds are transferred ...

Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • Proposing a Zero-Balance Account

    260475 Proposing a Zero-Balance Account Zero-balance account Union Company is considering establishment of a zero balance account. The firm currently maintains an average balance of $420,000 in its disbursement account.

  • Zero-balance account of Union Company

    362039 Zero-balance account Union Company is considering establishment of a zerobalance account. Zero-balance account Union Company is considering establishment of a zero-balance account.

  • Zero-balance account

    364270 Zero-balance account 14.16 Zero-balance account Union Company is considering establishment of a zerobalance account. The firm currently maintains an average balance of $420,000 in its disbursement account.

  • Finance Problems: Credit, Zero-Balance Account, and Annual Rate

    Zero-balance account Union Company is considering establishment of a zero balance account. The firm currently maintains an average balance of $420,000 in its disbursement account.

  • Miller-Orr Model

    35345 Miller-Orr Model In the Miller-Orr Model, which is NOT true ______ When the cash balance falls to zero, the amount coverted from maretable securities to cash is the amount represented by the upper limit or When the cash balance reaches

  • Statement is true about retained earnings

    a is correct - the net income would be zero.

  • Zero Balance Account

    458503 Zero Balance Account Carbide Corporation is examining its operating cash management. One of the options the firm is considering is a zero-balance account (ZBA).

  • Balance Sheet and Financial Analysis

    Assume that all other unspecified accounting categories are zero. *Show the profit and loss statement, cash flow statement and ending balance sheet, assuming that Xenon buys the computer equipment using a loan or the full amount of the purchase.

  • Union Company, Data Back-Up Systems, Accounts Receivable

    Union Company is considering establishment of a zero-balance account. The firm currently maintains an average balance of $420,000 in its disbursement account.

View More Related Solutions