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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:

Acash is available for investment until items are presented for payment at the company's bank

Bfunds do not have to be deposited until the EE cashes the check

Cthe company receives interest on the account

Dbank reconciliations are not required

Show Suggested Answer

Suggested Answer: D

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

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Martha

7 months ago

Not sure about D. Aren't reconciliations still needed?

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Myra

8 months ago

Totally agree with A! It helps keep funds flexible.

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Valda

8 months ago

Wait, do companies really get interest on these accounts?

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Nancey

8 months ago

I think B makes more sense. Why wait to deposit?

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Ilene

8 months ago

A is definitely the reason! Cash flow management is key.

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Thora

9 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

9 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

9 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

9 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

9 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

9 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

9 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

9 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

1 year 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

1 year 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

1 year 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

1 year 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

1 year 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

1 year ago

C) the company receives interest on the account

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Pamella

1 year ago

B) funds do not have to be deposited until the EE cashes the check

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Precious

1 year ago

C) the company receives interest on the account

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Carin

1 year ago

A) cash is available for investment until items are presented for payment at the company's bank

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Jesus

1 year ago

B) funds do not have to be deposited until the EE cashes the check

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Louis

1 year 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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