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Meaning :-
A zero balance account (ZBA) is a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented. A ZBA is used by corporations to eliminate excess balances in separate accounts and maintain greater control over disbursements.
Sentence Formation:-
ZBA involves the financial management of particular short-term projects or those at particular risk for unexpected overages as the use of a ZBA helps prevent excess charges without proper notification and approval.
Related terms :-
Checking account,Linked Transfer Account,Account Activity,Account Balance
Zero Balance Account
An account that maintains no funds in it because the account holder transfers only enough funds into it to cover checks written on it. A zero balance account exists so companies can prevent excessive balances on accounts and more effectively control how they distribute funds.
ZBA. Achecking accountwhich always maintains abalanceofzero. Whenever thecorporationneeds to write a check, theytransfermoneyinto theaccountfor theexactsum forwhich the check will be written, so that once the check is cashed there will once again be a balance of zero inthe account. This helps the corporationavoidhaving money in too many different places.
A zero balance account is a business oriented bank account that usually has a balance of $ 0.
Explanation
Zero Balance Accounts can also be used for depository purposes.
Statement form
A company with several divisions may make deposits into its ZBA. At the close of business, a debit is made to the ZBA and all of the funds are credited to the main account.
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