Zero Balance Account - ZBA

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Definition: Zero Balance Account - ZBA

A checking account in which a maintains a balance of zero always. Whenever the corporation needs to write a check transfer equal amount of money that is needed to the account so that once the cheque is encashed the zero balance will be maintained again. This helps the corporation avoid having money in too many different places.


It eliminates excess balances in separate accounts and helps in maintaining greater control over disbursements.

 

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