Which of the Following Is a Checking Account That the Firm

question 112

Multiple Choice

Which of the following is a checking account that the firm sets up so that the bank agrees to automatically transfer funds from an interest-bearing account to pay off any checks presented?

• A) Lockbox system
• B) Concentration banking
• C) Wire transfers
• D) Zero-balance account

---

Definitions:

Ethical Problem

A situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Unearned Accounting Fees

Fees received for accounting services that have not yet been performed, considered a liability until the services are provided.

Accounting Services

Professional services that include bookkeeping, tax preparation, auditing, and financial analysis for individuals or businesses.

Unadjusted Trial Balance

A financial statement listing all the accounts and their balances before any adjustments are made, used for internal purposes to check the balance of debits and credits.