Sparrow Corporation The Items Listed Below Were Identified While Preparing a Bank

question 33

Multiple Choice

Sparrow Corporation
The items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012.

-Refer to the information presented for Sparrow Corporation. Determine the amount of Sparrow's actual cash balance.

• A) $16,800
• B) $20,200
• C) $ 1,700
• D) Cannot be determined

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Definitions:

Disposable Income

The amount households can devote to saving and spending once income taxes have been factored in.

Savings

The portion of disposable income not spent on consumption of consumer goods but accumulated or invested.

Disposable Income

The financial surplus households hold for spending and saving after income taxes have been applied.

Savings

Money that is put aside for future use rather than spent immediately.