In order to explain the change in the master cash account between the beginning and the end of the period, the accountant reconstructs the entries originally made in the accounts during the period and enters them in appropriate T-accounts on the T-account work sheet.By explaining the changes in balance sheet accounts other than cash, this process also explains the change in
A)cash and cash equivalents.
B)cash, only.
C)working capital.
D)cash and marketable securities.
E)funds.

Question

Quizplus · Accepted Answer

The T-account work sheet is used to explain the changes in balance sheet accounts other than cash, which in turn explains the change in cash and cash equivalents.

In Order to Explain the Change in the Master Cash