There are two records of a business's cash:
A) the cash account in the general ledger and the petty cash box.
B) the cash account in the general ledger and the journal entries from the bank reconciliation.
C) the bank statement and the cash account in the general ledger.
D) the bank statement and the cash in petty cash.

Question

Quizplus · Accepted Answer

The two records of a business's cash are the bank statement and the cash account in the general ledger. The general ledger tracks all cash transactions, including those made with petty cash. The bank statement shows all transactions that have gone through the bank and can be used to reconcile the cash account in the general ledger. The other options may also be records of cash, but they are not the two primary records that accurately reflect a business's cash position.

There Are Two Records of a Business's Cash