During the month of February, Victor Services had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1 beginning cash balance?
A) $2,900.
B) $700.
C) $0.
D) $4,300.
E) $1,100.

Question

Quizplus · Accepted Answer

The beginning cash balance is the cash balance at the start of the period. To calculate the beginning cash balance, we can use the following formula:Beginning cash balance = Ending cash balance + Cash disbursements - Cash receiptsSubstituting the given values into the formula, we get:Beginning cash balance = $1,800 + $8,600 - $7,500 = $2,900Therefore, the February 1 beginning cash balance was $2,900.

During the Month of February, Victor Services Had Cash Receipts