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

Question

Quizplus · Accepted Answer

The correct income statement account used to record cash overages and cash shortages arising from petty cash transactions or from errors in making change is titled "Cash Over and Short." This account reflects the difference between the actual amount of cash on hand and the recorded amount of cash. It is used to adjust the balance of the petty cash fund or cash drawer to the correct amount. None of the other answer choices accurately reflect this type of account.

An Income Statement Account That Is Used to Record Cash