How are negative cash balances reported on the balance sheet?
Assuming that the entire bank account is negative, then the company should present the negative cash balance as a current liability on the balance sheet. Negative bank account balances cannot be netted with bank accounts that have positive bank balances.
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You might also be interested in... How to prepare a bank reconciliation?
How to prepare a bank reconciliation? The point of preparing a bank reconciliation is to reconcile the cash per bank statement to the cash balance per books (i.e. accounting records). There are a number of reconciling items, and its important that the accounting team always understands how to reconcile cash. Cash balance per bank: When...
How to prepare a bank reconciliation?
How to prepare a bank reconciliation? The point of preparing a bank reconciliation is to reconcile the cash per bank statement to the cash balance per books (i.e. accounting records). There are a number of reconciling items, and its important that the accounting team always understands how to reconcile cash. Cash balance per bank: When...
