The Cash Over and Short account:
A)Is not necessary in a computerized accounting system.
B)Is used to record a credit balance in the cash account.
C)Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts.
D)Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts and is not necessary in a computerized accounting system.
E)None of these answers is correct.

Question

Quizplus · Accepted Answer

The Cash Over and Short account is an income statement account used to record discrepancies between recorded cash and actual cash, such as errors in making change or missing petty cash receipts.

The Cash Over and Short Account