Relevance and Faithful Presentation Are Important Considerations for Determining the Format

question 55

True/False

Relevance and faithful presentation are important considerations for determining the format to use for the purposes of presenting the statement of financial position.

---

Definitions:

Outstanding Checks

Checks that have been written and recorded in a company's financial records but have not yet been cashed or cleared by the bank.

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

NSF Check

A check that has been declined by a bank due to insufficient funds in the account it was drawn on.

Adjusted Cash Balance

The cash amount reflected in the accounting records after adjustments for items like outstanding checks and deposits-in-transit.