An Account into Which Funds Are Deposited Only in an Amount

question 96

Multiple Choice

An account into which funds are deposited only in an amount equal to the value of the checks presented for payment that day is called a ________ account.

• A) lockbox
• B) concentration
• C) zero-balance
• D) compensating balance
• E) revolving

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Definitions:

Economic Value

The assessment of value that a good or service offers to an economic entity.

Operating Cost

Expenses associated with the day-to-day operations of a business, including costs for materials, labor, and overhead.

Useful Life

The estimated period over which a fixed asset is expected to be usable for the purpose it was acquired.

Economic Value

Economic value refers to the worth of a good or service determined by its utility and ability to meet the demand of those willing to pay for it.