The Cash Over and Short account:
A)Is used when the cash account reports a credit balance.
B)Is used to record the income effects of errors in making change from a cash register and/or processing petty cash transactions.
C)Is not necessary in a computerized accounting system.
D)Can never have a debit balance.
E)Can never have a credit balance.

Question

Quizplus · Accepted Answer

The Cash Over and Short account is used to record the income effects of errors in making change from a cash register and/or processing petty cash transactions. This account may have a debit or credit balance depending on the circumstances. It is necessary even in a computerized accounting system to record any discrepancies in cash.

The Cash Over and Short Account