If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as an "other income" item on the income statement.

Question

Quizplus · Accepted Answer

A credit balance in Cash Short and Over indicates that more cash was received than expected, resulting in a surplus. It is not related to the usual operating revenue or expenses of the business, so it should be reported as an "other income" item on the income statement.

If the Balance in Cash Short and Over at the End