An income statement account used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is the:
A)Cash Receivable account.
B)Petty Cash account.
C)Bank Reconciliation account.
D)Cash Over and Short account.
E)Cash Lost account.

Question

Quizplus · Accepted Answer

The Cash Over and Short account is specifically used to record discrepancies in petty cash receipts and making change, whether it be an overage or a shortage. This account helps to track any discrepancies and ensure that the petty cash fund is accurate. The other options are not relevant to this specific situation.

An Income Statement Account Used to Record Cash Overages and Cash