I understand your explanation but I still think you are wrong. 

Based on the link you gave me, it seems like undeposited funds should be in cash.  I quote "It typically includes coins, currencies, funds on deposit with bank, cheques and money orders."  Since funds on deposit with bank is listed one should assume that meant all money already deposited meaning all the others types listed are not deposited.  Think about it this way.  If I was running a small business and I had a cash register I would have $200 in there to make change for customers plus all the cash customers paid me.  Maybe I go to the bank once a week or when I feel there's a good bit of cash.  That money certainly doesn't go in Other Current Assets because I can READILY change it into cash.  

The example they cited as Other Current Assets was a overpayment of taxes due to the company.  That means they are going to get the money at some point but it wasn't cash.  

Finally, if you look at the sample chart of accounts used by GAAP it says "Cash in bank and on hand".  If I have a check in my drawer and it's not in the bank I would say it's "on hand".

We can beat this up all day but if you look at how many posts there are about this account it would seem like Quickbooks has dropped the ball on this.  If the account was listed before the bank account it might make more sense to folks.  If nothing else, don't force the account on folks OR let them assign which GL account as to use as the pass through account.