Question

In calculating the daily balance, cash advances are

A. Sometimes added in
B. Always added in
C. Sometimes subtracted out
D. Always subtracted out

Answer 1

A. Sometimes adding in.

Answer 2

B. Always added in

Step-by-step explanation:

While calculating the daily advance, the cash advances are always added because there is a security that the company would receive the cash in a specified period of time. Plus, it does not create any liability.

And, since advance cash is received which result in an increase in cash balance so it would be added in the daily balance computation part