Computing the Cash Balance Indicate whether or not each of the following ten items should be included in the cash balance presented on the balance sheet. Also indicate the normal balance sheet treatment for those items not included as cash.
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Item |
Include in Cash Balance |
Classification of Items Excluded |
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1. NSF checks |
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2. Savings account |
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3. Postage stamps |
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4. Postdated checks |
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5. IOUs |
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6. Cash on hand |
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7. Cash in sinking fund |
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8. Travel advance |
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9. Bank draft |
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10. Traveler’s checks |