For Additions to Debt,the Auditor Traces the Proceeds into the Cash

question 40

True/False

For additions to debt,the auditor traces the proceeds into the cash receipts records and the bank statement.

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Definitions:

Cash Balance

The amount of currency and liquid instruments in a company's possession that can be readily used for transactions.

Check

A written order directing the bank to pay a certain sum to a designated party.

Check Register

A record book or digital log used to track checks written, deposits made, and current account balances.

Deposit

A sum of money placed into an account or given as a part payment towards a purchase, often to secure it or show commitment.