Local, State, and Federal Governments Use Accounting Information to Calculate

question 42

True/False

Local, state, and federal governments use accounting information to calculate income tax.

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Definitions:

Adjusted Cash Balance

The cash balance reported on a company's financial statements, modified for checks that have not yet cleared or deposits in transit.

Outstanding Checks

Checks that have been written and recorded in a ledger but have not yet been cashed or cleared by the bank.

Outstanding Deposit

Funds that have been deposited but not yet credited to the depositor's account.

Check Register

A record maintained by the account holder of checks written, deposits made, and current balance, used for managing a checking account.