MGMT 200 EXAM 2 2026 FINAL REVIEW
WORKBOOK CASE STUDIES AND NOTES A+
◉ Cash Disbursements. Answer: Outflows of cash from a business
(payments for inventory, expenses, debt).
◉ Deposit in Transit. Answer: Cash received and recorded by the
company but not yet processed by the bank (bank reconciliation
item).
◉ Outstanding Check. Answer: A check written and recorded by the
company but not yet cleared by the bank (bank reconciliation item).
◉ NSF Check. Answer: "Non-sufficient funds" check returned
because the customer's bank account didn't have enough money.
◉ Bank Service Charge. Answer: Fee charged by the bank that
reduces the company's cash balance on the books.
◉ Bank Collection. Answer: Amount collected by the bank on the
company's behalf (like a note receivable collection).
, ◉ Bank Reconciliation. Answer: A schedule that explains differences
between the bank cash balance and the company's book cash
balance.
◉ Adjusted Bank Balance. Answer: Bank statement balance after
adding deposits in transit and subtracting outstanding checks (and
correcting errors).
◉ Adjusted Book Balance. Answer: Book cash balance after
recording items like service charges, NSF checks, interest, and
collections.
◉ Petty Cash. Answer: Small fund used for minor purchases,
controlled with receipts/vouchers and replenishment procedures.
◉ Statement of Cash Flows. Answer: Financial statement that
explains the change in cash during a period through operating,
investing, and financing activities.
◉ Operating Activities. Answer: Cash flows related to day-to-day
business operations (customers, suppliers, wages, etc.).
◉ Investing Activities. Answer: Cash flows from buying/selling long-
term assets and investments.
WORKBOOK CASE STUDIES AND NOTES A+
◉ Cash Disbursements. Answer: Outflows of cash from a business
(payments for inventory, expenses, debt).
◉ Deposit in Transit. Answer: Cash received and recorded by the
company but not yet processed by the bank (bank reconciliation
item).
◉ Outstanding Check. Answer: A check written and recorded by the
company but not yet cleared by the bank (bank reconciliation item).
◉ NSF Check. Answer: "Non-sufficient funds" check returned
because the customer's bank account didn't have enough money.
◉ Bank Service Charge. Answer: Fee charged by the bank that
reduces the company's cash balance on the books.
◉ Bank Collection. Answer: Amount collected by the bank on the
company's behalf (like a note receivable collection).
, ◉ Bank Reconciliation. Answer: A schedule that explains differences
between the bank cash balance and the company's book cash
balance.
◉ Adjusted Bank Balance. Answer: Bank statement balance after
adding deposits in transit and subtracting outstanding checks (and
correcting errors).
◉ Adjusted Book Balance. Answer: Book cash balance after
recording items like service charges, NSF checks, interest, and
collections.
◉ Petty Cash. Answer: Small fund used for minor purchases,
controlled with receipts/vouchers and replenishment procedures.
◉ Statement of Cash Flows. Answer: Financial statement that
explains the change in cash during a period through operating,
investing, and financing activities.
◉ Operating Activities. Answer: Cash flows related to day-to-day
business operations (customers, suppliers, wages, etc.).
◉ Investing Activities. Answer: Cash flows from buying/selling long-
term assets and investments.
