Consider the Following Information Taken from the Cash Account How Much Was the Beginning Balance of the Cash Account

question 160

Multiple Choice

Consider the following information taken from the cash account. Assume cash payments were 80% of collections. $$\begin{array} { | c | l | } \hline \text { Cash } & \\\hline ? ? & \text { Beginning balance } \\\hline \$ 115,375 & \text { Collections } \\\hline ? ? & \text { Disbursements } \\\hline \$ 80,275 & \text { Ending balance } \\\hline\end{array}$$ How much was the beginning balance of the cash account?

• A) $57,200
• B) $92,300
• C) $103,350
• D) $35,100

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Definitions:

Note Payable

A written promise to pay a specified amount of money, typically with interest, by a certain date.

Decrease Assets

A reduction in the value or quantity of the assets owned by a company or individual.

Prepaid Insurance Account

An asset account on the balance sheet representing insurance premiums that have been paid in advance and are gradually expensed over the coverage period.

Premium

An amount paid in excess of the nominal or face value of something, often associated with insurance policies or bonds.