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APA CPP-Remote Exam - Topic 3 Question 66 Discussion

Actual exam question for APA's CPP-Remote exam
Question #: 66
Topic #: 3
[All CPP-Remote Questions]

One reason many companies use a Zero Balance Checking Account is that:

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Suggested Answer: D

by Margurite at Mar 03, 2025, 06:39 PM

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Martha
4 months ago
Not sure about D. Aren't reconciliations still needed?
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Myra
5 months ago
Totally agree with A! It helps keep funds flexible.
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Valda
5 months ago
Wait, do companies really get interest on these accounts?
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Nancey
5 months ago
I think B makes more sense. Why wait to deposit?
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Ilene
5 months ago
A is definitely the reason! Cash flow management is key.
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Thora
5 months ago
D seems unlikely since I recall that bank reconciliations are still necessary for any account type, including zero balance ones.
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Isadora
6 months ago
I practiced a similar question, and I feel like C could be misleading since zero balance accounts usually don't earn interest.
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Bernadine
6 months ago
I'm not really sure, but I remember something about how funds are only deposited when checks are cashed, so maybe B is the right choice?
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Eve
6 months ago
I think the answer might be A because it makes sense that companies want to keep cash available for investments.
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Youlanda
6 months ago
I'm pretty confident I know the answer to this one. Zero Balance Checking Accounts allow companies to hold onto their cash for as long as possible before it's needed to cover payments. That's gotta be the right answer.
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Yolando
6 months ago
Okay, I've got a strategy for this. The key is to focus on the main purpose of a Zero Balance Checking Account, which is to optimize the company's use of its cash. I'll evaluate each option with that in mind.
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Glennis
6 months ago
Hmm, I'm a little unsure about this one. I know Zero Balance Checking Accounts have something to do with managing cash flow, but I'm not totally clear on the specifics. I'll have to think it through carefully.
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Lea
6 months ago
This seems like a straightforward question about the benefits of a Zero Balance Checking Account. I'll carefully read through the options and think about which one best explains why companies use this type of account.
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Flo
11 months ago
Hmm, I'm going with A. Keeping the cash in the account until it's needed sounds like a smart move to me. Plus, it'll make the company look super organized.
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Oren
11 months ago
C) the company receives interest on the account? Seriously? This is a checking account, not a savings account. I think someone's been drinking too much coffee during their lunch break.
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Britt
11 months ago
D) bank reconciliations are not required? Sign me up! I'd rather spend my time playing Angry Birds than balancing the books.
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Tequila
11 months ago
Option A seems legit. I like the idea of having cash available for investing until the check clears. Cha-ching!
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Marcos
11 months ago
A Zero Balance Checking Account? That's like having an empty piggy bank - how are you supposed to buy candy with that?
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Devora
9 months ago
C) the company receives interest on the account
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Pamella
9 months ago
B) funds do not have to be deposited until the EE cashes the check
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Precious
10 months ago
C) the company receives interest on the account
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Carin
10 months ago
A) cash is available for investment until items are presented for payment at the company's bank
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Jesus
10 months ago
B) funds do not have to be deposited until the EE cashes the check
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Louis
10 months ago
A) cash is available for investment until items are presented for payment at the company's bank
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Ciara
1 year ago
I'm not sure, but I think C) the company receives interest on the account could also be a reason for using a Zero Balance Checking Account.
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Tammi
1 year ago
I agree with Ellsworth, having cash available for investment can be beneficial for the company.
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Ellsworth
1 year ago
I think the answer is A) cash is available for investment until items are presented for payment at the company's bank.
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