In this engaging lesson, Nick Palazzolo, CPA, takes a deep dive into the nitty-gritty of cash and cash equivalents, making sense of what counts and what doesn't when it comes to balance sheets. Kick-starting the session with a practical example, Nick shows how to correctly report cash and cash equivalents, using STAR Corp’s various accounts to illustrate the process. He clarifies why certain items like marketable securities don't make the cut, while others such as petty cash and depository accounts do. Moving onto the art of bank reconciliation, Nick provides an easy-to-understand walkthrough of the process, deciphering which items should be added or subtracted to reflect the true cash balance. The lesson is packed with tips to understand the finer points of financial statements, and he even throws in some memory aids to help retain the more complex accounting concepts. It's a thorough breakdown that boosts confidence in tackling similar questions and preparing for the surprises they might find on exam day.
Lesson: Cash and cash equivalents - Practice Questions
In this engaging lesson, Nick Palazzolo, CPA, takes a deep dive into the nitty-gritty of cash and cash equivalents, making sense of what counts and what doesn't when it comes to balance sheets. Kick-starting the session with a practical example, Nick shows how to correctly report cash and cash equivalents, using STAR Corp’s various accounts to illustrate the process. He clarifies why certain items like marketable securities don't make the cut, while others such as petty cash and depository accounts do. Moving onto the art of bank reconciliation, Nick provides an easy-to-understand walkthrough of the process, deciphering which items should be added or subtracted to reflect the true cash balance. The lesson is packed with tips to understand the finer points of financial statements, and he even throws in some memory aids to help retain the more complex accounting concepts. It's a thorough breakdown that boosts confidence in tackling similar questions and preparing for the surprises they might find on exam day.
Updated: June 18, 2024 Create an account