Which One of the Following Statements Is Correct Concerning Zero-Balance

question 34

Multiple Choice

Which one of the following statements is correct concerning zero-balance accounts?

• A) Each zero-balance account is offset by a compensating balance account.
• B) Zero-balance accounts are used for depositing incoming funds.
• C) A master account must be used in conjunction with a zero-balance account.
• D) Zero-balance accounts are used solely in conjunction with a lockbox system.
• E) Zero-balance accounts are still required to maintain a minimal balance.

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Definitions:

Total Probability Rule

A fundamental rule in probability theory that allows for the calculation of the total probability of an outcome by considering all possible ways that outcome can occur.

Law of Large Numbers

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Blood Type

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Joint Frequency Distribution

A statistical representation showing the frequency of occurrences for combinations of two or more categories or variables.