ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A zero balance account (ZBA) is a checking account that always has a balance of $0. Zero balance accounts are always connected to a main account, which is also known as a concentration account. This streamlines processing and transfers funds as needed into the ZBA.

Detailed explanation-2: -In other words, the sum of your company assets, liabilities and equity should always balance to zero. If you generate a balance sheet report that does not equal zero, the balance sheet is out of balance and there may be an error in the ledger transactions.

Detailed explanation-3: -Since every transaction in the balance of payments has two offsetting entries, the total balance of payments should be zero.

Detailed explanation-4: -A zero balance account is a bank account that intentionally carried $0. A company only funds the account when items need to be paid, and any remaining cash after deposits is often swept at the end of the night.

Detailed explanation-5: -In banking and accounting, the balance is the amount of money owed (or due) on an account. In bookkeeping, “balance” is the difference between the sum of debit entries and the sum of credit entries entered into an account during a financial period.