A debit balance in the Cash Short and Over account at the end of the accounting period appears:
A)on the income statement as a miscellaneous expense.
B)on the balance sheet as a prepaid expense.
C)on the balance sheet as a current liability.
D)on the income statement grouped with cost of goods sold.

Question

Quizplus · Accepted Answer

A debit balance in the Cash Short and Over account indicates that there were more cash shortages than overages during the period. This is treated as a miscellaneous expense and reported on the income statement.

A Debit Balance in the Cash Short and Over Account