Balances of the Current Asset and Current Liability Accounts at the End

question 109

Essay

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:​ Use the direct method to prepare the Cash flows from operating activities section of a statement of cash flows.

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Definitions:

Disbursement Float

The time delay between when a check is issued and when the funds are actually withdrawn from the payer's account.

Ledger Balance

The total amount recorded in a company's ledger, representing the total assets, liabilities, and shareholders' equity at a specific time.

Available Balance

The amount of money in an account that is accessible for use.

Float

The time difference between when a check is written and deposited and when it is cleared and funds are available, or, in finance, the amount of shares available for trading by the public in the stock market.