At the end of an accounting period, the "cash balance per bank statement" on that date is usually the proper cash amount to show on the balance sheet.

Question

Quizplus · Accepted Answer

The proper cash amount to show on the balance sheet is the adjusted cash balance, which accounts for outstanding checks, deposits in transit, and any errors on the bank or company's part, not just the cash balance per bank statement.

At the End of an Accounting Period, the "Cash Balance