Cash and bank

Transactions that are not included in the bank balance are included in the cash book balance. Transactions that are not included in the cash balance are included in the bank statement balance. Transactions included in the cash balance but not in the bank balance include deposits in transit and outstanding checks.

The line item on the balance sheet that represents the value of a company’s cash assets or maybe turned into cash promptly is known as cash and cash equivalents. Bank accounts and marketable securities, debt instruments with maturities of less than 90 days, are examples of cash equivalents.