What is the mathematical formula that you would use to describe a financial activity on a bank statement? Explain your response

Question

3 years ago

13

What is the mathematical formula that you would use to describe a financial activity on a bank statement? Explain your response

to your option of choice, included.
a. Ending Balance = Previous Balance + Deposits + Withdrawals
b. Ending Balance = Previous Balance - Deposits + Withdrawals
c. Ending Balance = Previous Balance + Deposits - Withdrawals
d. Ending Balance = Previous Balance - Deposits - Withdrawals

Business

1 answer:

VMariaS [17] · Answer 1 · 2022-07-16T04:54:09+03:00

Answer:

c. Ending Balance = Previous Balance + Deposits - Withdrawals

Explanation:

Deposits are every cash transaction that increase your bank balance, and withdrawals are expenses that decrease your bank balance. Hence the closing / ending balance any day would be the difference of deposits and withdrawals, with opening balance in summation.