If the opening balance of cash for one month is $20,000,cash receipts are estimated to be $389,000 and cash payments are estimated as $300,000,the opening cash balance at the beginning of the next month is:

Question

Quizplus · Accepted Answer

The closing balance of cash at the end of the month can be calculated by adding the opening balance ($20,000) to the cash receipts ($389,000) and subtracting cash payments ($300,000). 
Closing balance = $20,000 + $389,000 - $300,000 = $109,000 
Therefore, the opening cash balance at the beginning of the next month is $109,000. 
The correct answer is Choice B.

If the Opening Balance of Cash for One Month Is