How is cash balance calculated at the end of a month?
A) By adding balance at beginning of month and total cash receipts and subtracting total cash payments
B) By adding balance at beginning of month and total cash payments and subtracting total cash receipts
C) By adding total cash receipts and total cash payments and subtracting balance at beginning of month
D) By adding balance at beginning of month, total cash receipts, and total cash payments

Question

Quizplus · Accepted Answer

A cash balance is calculated by adding the balance at the beginning of the month to the total cash receipts and then subtracting the total cash payments. This gives you the remaining balance at the end of the month.

How Is Cash Balance Calculated at the End of a Month