If the cash short and over account has a debit balance at the end of the fiscal year,the balance represents a revenue.

Question

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The cash short and over account is used to record small discrepancies in cash transactions. If the account has a debit balance at the end of the fiscal year, it means that more money was paid out than was received. This is not a revenue, but rather an expense or loss for the company. A revenue is earned when the company receives payment for goods or services provided.

If the Cash Short and Over Account Has a Debit