Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Bank Reconciliation

Financial Accounting

6. Internal Controls and Reporting Cash

Bank Reconciliation

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Managing a business's days cash on hand provides which of the following benefits?

It allows the business to avoid preparing cash flow statements.

It guarantees higher interest income from excess cash balances.

It helps ensure the company can meet short-term obligations as they come due.

It eliminates the need for bank reconciliations.

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'Days Cash on Hand': This metric measures the number of days a company can continue to pay its operating expenses using its available cash. It is a critical liquidity measure.

Recognize the importance of liquidity: Liquidity ensures that a company can meet its short-term obligations, such as paying suppliers, employees, and other operational costs, without relying on external financing.

Evaluate the benefits of managing Days Cash on Hand: Proper management helps the company maintain financial stability and avoid disruptions in operations due to cash shortages.

Clarify misconceptions: Managing Days Cash on Hand does not eliminate the need for preparing cash flow statements or bank reconciliations, nor does it guarantee higher interest income from excess cash balances.

Conclude with the correct benefit: The primary advantage of managing Days Cash on Hand is ensuring the company can meet short-term obligations as they come due, which is essential for maintaining operational continuity.