Which benefit could a company achieve by utilizing zero balance accounts?

Utilizing zero balance accounts allows a company to maintain minimal cash balances in its operating accounts while ensuring that necessary funds are available for transactions as needed. With zero balance accounts, any excess cash in these accounts is automatically transferred to a master account, effectively minimizing idle cash that would otherwise sit unused. This mechanism ensures that the company optimizes its cash management by keeping only the necessary amount in operational accounts while maximizing the amount that can be used for investments or other financial purposes.

In contrast, while options like enhancing cash flow for investments, lowering bank fees, and increasing credit availability are important financial considerations, they do not directly stem from the specific features and benefits provided by zero balance accounts. The primary advantage revolves around the efficient management of cash, reducing the amount that remains idle and ensuring that funds are working effectively for the company’s financial strategy.