CASH AND BANK RECON

Question 1

How to calculate Cash Disbursement per Books?

Answer 1

Total DpB = Disbursements Per Bank Statement CM
+ CM Pmts in Books but Outs-Cks in Bank
- Outs-Cks from Prior Month CLR in CM

Question 2

When Accounts Receivable is used as a collateral to obtain financing.
Control of Accounts Receivable is still with the borrower.
Lender will have control on Accounts Receivable only in case of default

Answer 2

Pledging

Question 3

When Accounts Receivable is used as a collateral to obtain financing.
Control of Accounts Receivable is still with the borrower.
Promising that all proceeds from Accounts Receivable would be used to pay off the liabilities

Answer 3

Assigning

Question 4

Collection Responsibilities of Accounts Receivable is transferred to a Factoring House
And an adavance is collected against that.

Answer 4

Factoring