The cash balance of Mendoza Company consists of the following on December 31, 2020: Cash on hand, including stale check of Php60,000 and postdated check of Php30,000 Cash in bank in a checking account with another bank Petty cash Savings deposits Php650,000 450,000 18,000 550,000

Q: What should the net change in cash section of the statement of cash flows always reconcile with?

A: Cash flows statement is a summary statement which provides details of all the cash inflows and cash…

Q: Differentiate cash from accrual method of reporting income and expenses.

A: The basic difference between accrual and cash basis accounting is about timing for recognizing…

Q: Define cash and cash equivalents and explain how to report them.

A: Cash and cash equivalents are the current assets of a company which are available as cash or readily…

Q: What are the considerations for recording and recognizing cash discounts received?

A: Cash discounts, also known as sales discounts or prompt payment discounts, are reductions in the…

Q: What are normal and nonnormal cash flows?

A: Answer: Normal cash flows projects are those in which one or two cash outflows occur at the outset…

Q: cash and cash equivalents include

A: Introduction: Cash is used to buy goods and services and to pay off debts. Items that do not qualify…

Q: Describe reconciliation with change in cash balance.

A: A cash flow statement is used to reconcile with change in cash balance. It shows the cash flow in…

Q: Which is better to have? Accounts receivable or notes receivable? And why?

A: Accounting is the process of recording financial transactions that are material to the business. It…

Q: The total cash receipts have to be put in the final part?

A: The cash receipts means the amount of money received either through cash mode or bank.

Q: Explain the term cash equivalents with examples.

A: Cash equivalents: Assets which are highly liquid in terms of quick payment and near to due date are…

Q: Why is careful management of accounts receivable and accounts payable so essential to ensuring…

A: Accounts receivables are resources that are generally classified as current assets, implying that…

Q: What does the cash ratio help determine, and how is it calculated?

A: Cash ratio is a liquidity ratio that compares the assets of the company with its current…

Q: What is cash payment

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: How do I calculate cash provided by operations?

A: Cash provided by the operations = Cash flow from operations = EBIT x (1 - Tax rate, T) + Non cash…

Q: What is the importance of statement of cash flows?

A: Cash flow is the flow of money that flows in and out of a business. It can be expressed in terms of…

Q: Define Restricted Cash.

A: Restricted cash refers to money that is held for a specific purpose and therefore not available to…

Q: What are the Examples of cash equivalents?

A: Cash & Cash equivalents: Cash is the money which is readily available in the form of currency.…

Q: What are the different risks associated in the accounting of cash

A: The element of risk arises in each and every area and how well we can minimise or reduce the risk is…

Q: Why could cash be falling in a set of accounts?

A: Cash can fall in a set of accounts for a variety of reasons. These include making large purchases,…

Q: separation of duties

A: Separation of duty is the internal conttro process by which the company avoids the fraud and…

Q: What is Repayment cash flow?

A: Cash flows play a significant role in companies. It helps companies to identify the liquidity…

Q: What is a "proof of cash? What purpose does it serve?

A: A four-column bank statement prepared by auditors is called proof of cash. It has a detailed…

Q: Indentify some of key cash inflows and cash outflows?

A: Cash flows of the firm is the movement of cash to and from business. It includes all the inflows of…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.