Which of the Following Statements Concerning Zero Balance Accounts Is

question 31

Multiple Choice

Which of the following statements concerning zero balance accounts is not correct?

• A) They are set up to handle disbursement activity.
• B) The account has a minimum amount at all times.
• C) Checks are automatically transferred into the account as checks are presented for payment.
• D) The transfer is automatic and involves an accounting entry only.
• E) The master and the zero balance accounts are located at the same bank.

---

Definitions:

Uncertainty

The lack of clarity about future events that can cause entrepreneurs to take unreasonable actions.

Pivot

A change in business direction.

Ethical Boundary

The limits of acceptable behavior and practices, determined by ethical principles and standards, beyond which actions become morally wrong.

Deviance

When an entrepreneur defies legal and ethical boundaries, leading to mismanagement of the venture.