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.
The Montana Balance Sheet Support Schedule — Cash Balance is an essential financial document that provides a detailed overview of an organization's cash balances. It plays a crucial role in allowing stakeholders to assess the financial health and liquidity of a company. This schedule outlines the cash resources available to meet short-term obligations and fund day-to-day operations. The Cash Balance section of the Montana Balance Sheet Support Schedule reveals the existing cash assets held by an organization at a specific point in time. It includes various types of cash equivalents, such as physical currency, bank deposits, and highly liquid investments that can be easily converted into cash within a short timeframe. These balances are categorized based on their nature and purpose to enhance transparency and accuracy in financial reporting. Different types of Montana Balance Sheet Support Schedule — Cash Balance may include: 1. Operating Cash Balance: This pertains to cash generated from the company's primary revenue-generating activities, such as sales or services. It shows the funds available for routine operational expenses, such as wages, inventory purchases, and rent. 2. Investment Cash Balance: This includes cash tied up in short-term investments or marketable securities. Companies often choose to invest excess cash in order to earn returns. These investments typically have a higher liquidity level and can be readily converted into cash when needed. 3. Restricted Cash Balance: This represents cash that is held for specific purposes and is subject to certain restrictions or legal obligations. For example, it can include cash set aside for debt service, pending legal claims, or compliance with regulatory requirements. 4. Petty Cash Balance: Petty cash refers to a small amount of money kept on hand for minor everyday expenses that do not warrant writing a check or using a credit card. The petty cash balance in the Montana Balance Sheet Support Schedule provides visibility into these minor expenditure needs. 5. Cash Equivalents: This section showcases highly liquid short-term investments that can be quickly converted into cash with minimal risk of value loss. Cash equivalents might include treasury bills, commercial paper, or money market funds. To summarize, the Montana Balance Sheet Support Schedule — Cash Balance is a comprehensive financial statement that itemizes an organization's cash and cash equivalents. It offers insight into the distribution of cash across various categories to help stakeholders understand the financial position, liquidity, and short-term solvency of the entity.
