National Check Professional (NCP) Certification Practice Test

What is a controlled disbursement?

1. A report of all checks cleared over the week

2. A service that provides daily information on checks that will clear

3. A measure to enhance customer mobile banking

4. A program to optimize transaction fees

The correct answer is: A service that provides daily information on checks that will clear

A controlled disbursement is defined as a banking service that provides businesses with daily notification of the checks that are expected to clear their accounts. This allows organizations to have better visibility and control over their cash flow by informing them of outgoing payments scheduled for the following day. By offering daily updates, businesses can ensure they maintain sufficient funds in their accounts to cover these checks, thus avoiding overdraft fees and managing their liquidity more effectively. This service is particularly helpful for organizations that issue numerous checks, as it aids in the precise management of cash positions. The other options involve components of financial management but do not accurately capture the core concept of controlled disbursement as it relates specifically to the timely reporting of checks that will affect account balances.