Assuming that the entire bank account is negative, then the company should present the negative cash balance as a current liability on the balance sheet. Negative bank account balances cannot be netted with bank accounts that have positive bank balances.
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Bank Reconciliation
Quarter 1 (Q1) Why is It Important to Reconcile Your Bank Statements: Bank reconciliation is a critical financial process used to match the cash balances on a company’s books to the amounts shown on its bank statement. Essential for maintaining accuracy in financial records, reconciliation in accounting involves identifying and explaining any discrepancies between these...
Bank Reconciliation
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