Test: CPA Financial Accounting and Reporting (FAR)

1.

Globe Company began April of Year 3 with a cash balance of $68,000 in its operating account. During the month of April, Globe issued new checks totaling $14,000 to vendors. Of these newly issued checks, $9,000 cleared the bank in April. Globe also transferred $8,000 to its payroll account to pay employees during the month. Globe received $22,000 in checks from its customers in April and deposited $18,000 of those checks during the month. Also during April $6,000 of checks issued during March of Year 3 cleared the bank. What is Globe's cash balance in its operating account at the end of April, Year 3?

$59,000

$64,000

$68,000

$55,000

1/3 questions

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