Cash and Cash Equivalents and Balance Sheet Flashcards
1
Q
What is a Cash Equivalent?
A
Security that is easily converted into cash w/ original maturity of 90 days or less
2
Q
What is the Bank Reconciliation calculation from Balance on Bank Statement?
A
Balance on Bank Statements plus Deposits in Transit minus Outstanding Checks plus or minus Errors made by Bank equals Corrected Balance
3
Q
What is the Bank Reconciliation calculation from the Checkbook Balance?
A
Checkbook balance plus Amounts collected by Bank minus Unrecorded Bank Charges plus or minus Errors made in Recording Transactions equals Corrected Balance
