Question: Define the following terms: a. Demand deposits b. Compensating balance c. Disbursement float d. Deposit float e. Lockbox f. Wire transfer g. Depository transfer check

Define the following terms:
a. Demand deposits
b. Compensating balance
c. Disbursement float
d. Deposit float
e. Lockbox
f. Wire transfer
g. Depository transfer check
h. Zero-balance system
i. Draft
j. Automated clearinghouse

Step by Step Solution

★★★★★

3.44 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Demand deposits are the funds firms or individuals keep in their bank checking accounts b Compensating balances are the minimum balances held by a f... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

138-B-F-F-M (877).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Define the following terms related to reciprocating engines: stroke, bore, top dead center, and clearance volume.

Define the following terms used in FASB Statement No. 13 as Amended: (a) Inception of lease, (b) Bargain purchase option, (c) Unguaranteed residual value, (d) Implicit interest rate, (e) Initial...

Define the following terms regarding preferred stock: (a) Dividend preference, (b) Cumulative, (c) Participating, (d) Convertible, (e) Warrants, (f) Callable, and (g) Redeemable.

Need help with these multiple choice questions for internal audit final exam. Due in 2 hours. QUESTION 1 RsQ_004Without management direction and assumption of responsibility, it would be...

What is the cost of using the internal collections system for collecting remittances from customers? a. approximately $450,000 b. approximately $350,000 c. approximately $250,000 d. approximately...

Suppose the company's cost of capital or discount rate falls to 8%. What is the cost of using the internal collections system for collecting remittances from customers? a. approximately $205,000 b....

I have attached both the chapters from which you will be answering the following question. Ch 8 (p 387 of text or p 35 of the pdf) ?Exercise D. Prepare the bank reconciliation and any required...

1. Which of the following terms is defined as the length of time between the purchase of inventory and the date of receipt of cash from the sale of that inventory is called the: A. Inventory period....

SUB: FINANCIAL MANAGEMENT Working Capital Management Straight Problems Exercises. 1. Working Capital Balance. Maria Clara Corporation found out the following working capital balance in its last 12...

The difference between a company's mission statement and the concept of a strategic vision is that a mission statement deals with what a company is trying to do,and a vision concerns what a company...

What is supply chain management (SCM) and why is it important?

The website archive.org has Question 4 7 options: information about web server software and operating systems people's information including addresses and phone numbers old web pages a list of sites...

Bernard Peskin and Earl Deutsch were partners in a law firm until Peskin withdrew. The partnership agreement obligated each partner to devote his entire time to the partnership business. Each...

As was mentioned in the chapter, new equity issues are generally only a small portion of all new issues. At the same time, companies continue to issue new debt. Why do companies tend to issue little...

Several publicly traded companies have issued more than one class of stock. Why might a company issue more than one class of stock?

fast broo Question 5 Bond price is: Inversely related to coupon rate and positively related to interest rate. O Positively related to coupon rate and inversely related to interest rate. O Positively...

Harry purchased his condo for $360,000 and now the appraised value is $370,000. His outstanding mortgage is $221,000. What is the maximum home equity line of credit Harry would qualify for? A....

Fill in the yellow highlighted cells with your forecasted figures. SHOW ALL YOUR SUPPORTING CALCULATIONSI You may do this either within the cell by using formulas, out to the right, or both - ciearly...