A Zero Balance Account Permits Divisions to Disburse Funds While

question 144

True/False

A zero balance account permits divisions to disburse funds while maintaining centralized control of several bank accounts.

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Definitions:

Pre-Tax Cost

The cost of an investment or loan without taking taxes into account.

Debt-Equity Ratio

A metric reflecting how company assets are proportionally financed by shareholders' equity and debt.

Cost of Equity

The return that investors expect for investing in a company's equity, considering the risk of the investment.

After-Tax Cash Savings

The increase in cash flow that results after all applicable taxes have been deducted from the gross income.