Asked by Amrita Tambar on May 01, 2024
Verified
A zero-balance account is required to maintain a safety stock.
Zero-Balance Account
A bank account which maintains a balance of zero by automatically transferring funds from a master account in an amount only large enough to cover checks presented.
- Comprehend the functioning of zero-balance accounts and their advantages in managing cash flow.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
False
Explanation :
A zero-balance account is a type of bank account that maintains a zero balance because funds are automatically transferred from a master account in the exact amount needed for each transaction, not related to maintaining safety stock in inventory management.
Learning Objectives
- Comprehend the functioning of zero-balance accounts and their advantages in managing cash flow.
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