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

Question

Quizplus · Accepted Answer

A debit balance in the Cash Over and Short account represents expenses related to discrepancies between actual cash receipts and expected cash receipts, which are typically classified as part of selling, general and administrative expenses on the income statement.

A Debit Balance in the Cash Over and Short Account