If the balance on the next unused check stub equals the cash balance calculated, what does this indicate?

When the balance on the next unused check stub matches the cash balance that has been calculated, this indicates that the cash is proved. Essentially, this alignment between the check stub and the cash balance demonstrates that the records are consistent and accurate. This consistency indicates that all cash transactions have been properly accounted for, and there are no discrepancies.

In accounting, proving cash is essential for confirming that the reported cash position is accurate. If the cash balance matches the check stub amount, it suggests that the accounting methods used to track cash inflows and outflows are functioning correctly. This verification process is crucial for maintaining financial integrity and ensuring that the organization can depend on its cash flow for operational needs.

The other options imply issues with cash management—such as not accounting for cash, a lack of funds, or an overestimation of cash—which are not the case when the check stub balance aligns with the calculated cash balance.