A balance sheet is an accounting tool used to summarize the financial status of a business or other entity. It generally lists assets on one side and liabilities on the other, and both sides are always in balance. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities. At any given time, assets must equal liabilities plus owners equity. An asset is anything the business owns that has monetary value. Liabilities are the claims of creditors against the assets of the business. A balance sheet is usually prepared each month, quarter of a year, annually, or upon sale of the business, in order to show the overall condition of the company.
Net cash balance means the beginning cash balance plus cash receipts minus cash disbursements. It also refers to the amount of money in an account. It is calculated by adding the initial deposit to all subsequent deposits and then subtracting all disbursements. A positive net cash balance indicates that money is present and available in the account, while a negative one indicates that the account is overdrawn.
A cash balance plan is a type of defined benefit plan. It also includes some elements that are similar to a defined contribution plan. In a cash balance plan, the benefit amount is computed based on a formula using contribution and earning credits, and each participant has a hypothetical account.
Hawaii Balance Sheet Support Schedule — Cash Balance refers to a financial statement showcasing the amount of cash held by an entity located in Hawaii at a specific point in time. It details the inflow and outflow of cash, allowing businesses, organizations, and individuals to understand their cash position. The cash balance sheet support schedule in Hawaii contains various types, including: 1. Operating Cash Balance: This represents the cash available for day-to-day operations, such as paying bills, purchasing inventory, and covering other expenses essential to running a business. 2. Investment Cash Balance: This type of cash balance refers to the funds set aside for investment purposes, aiming to generate additional income or potential capital appreciation. Investments may include stocks, bonds, real estate, or other assets that can generate returns. 3. Financing Cash Balance: It represents the cash available for financing activities such as obtaining loans, issuing bonds, or raising capital through equity financing. This cash balance helps determine the ability to meet payment obligations and fund expansion plans. 4. Restricted Cash Balance: Certain situations may require a company to hold cash for specific purposes or under certain restrictions. This includes funds reserved for legal settlements, employee benefits, lease agreements, or other contractual obligations. 5. Petty Cash Balance: This refers to the small amount of cash typically kept on hand by a business to cover minor expenses, like office supplies, minor repairs, or employee reimbursement. It allows for quick and convenient transactions without the need for formal procedures. The Hawaii Balance Sheet Support Schedule — Cash Balance allows stakeholders to assess the liquidity and financial health of an entity. It enables business owners, investors, and creditors to evaluate the availability of funds for various activities, make informed decisions, and ensure efficient cash management. By reviewing the diverse types of cash balances within this schedule, organizations can better understand their financial capabilities, prioritize expenditures, plan for future growth, and maintain adequate cash reserves for emergencies or unexpected needs. It serves as a crucial tool for financial analysis and strategic decision-making, ultimately contributing to the success of businesses and individuals operating in Hawaii.
