Question

Which of the following will not help a firm speed up the timing of when it can obtain the use of funds from checks written to it? Select one:
a. Lockbox arrangement.
b. Concentration banking.
c. Zero-balance accounts.
d. All of the above.
e. Only answers a and b.

Answer 1

Answer:

The correct answer is C

Explanation:

Zero-balance accounts is the checking accounts in which zero amount of balance is maintained through automatically transferring the funds from the master account in an amount which is only large enough in order to cover the checks presented.

This account will not speed up the timing when use the funds from the checks  written as it has keep a zero balance in the account.