A debit balance in the Cash Over and Short account reflects an expense and is reported on the income statement as part of general and administrative expenses.

Question

Quizplus · Accepted Answer

A debit balance in the Cash Over and Short account means that the actual cash in the register is less than the expected amount, indicating a shortage or loss. This shortage is treated as an expense and reported on the income statement as part of general and administrative expenses.

A Debit Balance in the Cash Over and Short Account