The definition of a datum is a fact used to make a conclusion or a point of reference in geography or geology. An example of a datum is a new scientific discovery used to reach a conclusion about the common cold.
How do you estimate minimum cash balance for the company? 2 ways I heard about are: 1) keep it equal to cash balance on B/S and 2) based on Net Working Capital. Is any of those methods preferred? Is there any other school of calculation that? And, if NWC method, then what exactly do you include in calculation (like include or excl.
How to Calculate Cash on Hand at the End of a Period in Accounting. Small businesses need to keep tight controls over their cash on hand. Cash on hand is the amount of cash you have either in your possession, in a bank or that can be converted to cash in three months or less, such as a CD. The easiest way to make this calculation is to count the cash you have on the last day of the accounting period. In order to keep proper track of your books and records, use your general ledger's journal entries to calculate the amount of your cash on hand. 1  1. Sort out any transactions to your Cash account in your general ledger. 2  2. Add together the amount debited to Cash for each transaction with a debit to the Cash account. Debit entries are not indented on the general ledger. For example, assume one journal entry is a debit for $50 to Cash and a credit of $50 to Sales. The rest of your debits to Cash in the period are $75, $25 and $100. The total is $250.