From ACT Wiki
The balance in a cash account reflects all items that have been deposited into and paid out of the account, over time.
It's fundamentally important to distinguish cash balances from cash flows, and also to understand the relationships between them.
For example, our positive cash balance - in our favour - at the end of a period is equal to:
- Our positive balance at the start of the period
- PLUS inflows during the period
- MINUS outflows (during the period)