If the cash short and over account has a credit balance at the end of the fiscal year,the balance represents an expense or loss.

Question

Quizplus · Accepted Answer

The cash short and over account typically represents errors or discrepancies in the accounting of cash transactions. A credit balance in this account means that there was more cash received than expected, which could result in income or gain rather than expense or loss. However, it is important to investigate and reconcile any discrepancies in the cash account to ensure accurate financial reporting.

If the Cash Short and Over Account Has a Credit