A credit balance in the Cash Short and Over account appears on the:
A)balance sheet as a current asset.
B)income statement as other revenue.
C)income statement as a miscellaneous expense.
D)balance sheet as a current liability.

Question

Quizplus · Accepted Answer

A credit balance in the Cash Short and Over account is considered other revenue and thus appears on the income statement. This account is used to record discrepancies between the actual cash received and the expected cash amount. A credit balance indicates an overage, which is treated as a revenue.

A Credit Balance in the Cash Short and Over Account