The debit balance in Cash Short and Over at the end of an accounting period is reported as
A) an expense on the income statement
B) income on the income statement
C) an asset on the balance sheet
D) a liability on the balance sheet

Question

Quizplus · Accepted Answer

A debit balance in the Cash Short and Over account indicates that there were more shortages than overages during the period, which is treated as an expense on the income statement.

The Debit Balance in Cash Short and Over at the End