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 Virginia Balance Sheet Support Schedule — Cash Balance is a financial document that provides a comprehensive breakdown of an organization's cash holdings. It outlines the cash inflows and outflows, ensuring transparency and accuracy in financial reporting. This schedule plays a vital role in assessing an entity's liquidity position and aids in making informed financial decisions. Keywords: Virginia Balance Sheet Support Schedule, Cash Balance, financial document, cash holdings, cash inflows, cash outflows, transparency, accuracy, financial reporting, liquidity position, financial decisions. There are several types of Virginia Balance Sheet Support Schedule — Cash Balance, each serving a specific purpose within the realm of financial management. These types include: 1. Operating Cash Balance: This component focuses on the day-to-day business activities and reflects the cash available for routine operational expenses. It helps gauge the entity's ability to cover immediate financial obligations, such as payroll, utility bills, and inventory replenishment. 2. Investing Cash Balance: This category pertains to the cash reserves allocated for investment purposes. It tracks the inflows and outflows related to the acquisition or sale of long-term assets, such as property, equipment, or securities. The proper management of investing cash balance enables organizations to generate additional income or enhance their existing asset base. 3. Financing Cash Balance: This section emphasizes the cash flow associated with external financing activities. It includes inflows from issuing bonds, taking out loans, or attracting investments, as well as outflows from loan repayments, dividends, or share buybacks. The financing cash balance is crucial for evaluating an organization's ability to meet long-term financial obligations and portray its debt management capacity. 4. Restricted Cash Balance: This type of cash balance refers to funds that are subject to restrictions and can only be used for specific purposes. These restrictions may arise due to legal obligations, contractual agreements, or regulatory requirements. Accounting for restricted cash separately allows better monitoring and compliance with the imposed limitations. 5. Cash Equivalents: While not included in the cash balance directly, cash equivalents are highly liquid investments that can be easily converted into cash. These typically include short-term investments such as treasury bills, money market funds, or certificates of deposit. Although not strictly cash, they are often included in the Virginia Balance Sheet Support Schedule to present a more accurate representation of an organization's liquid assets. Keywords: Operating Cash Balance, Investing Cash Balance, Financing Cash Balance, Restricted Cash Balance, Cash Equivalents, financial management, cash reserves, operational expenses, long-term assets, investing purposes, external financing activities, debt management, restricted funds, compliance, cash equivalents, liquid assets.
