Cash Short and Over is
A) a Misc. Expense account.
B) a Misc. Revenue account.
C) a Misc. Expense or Misc. Revenue account depending on the balance in the account.
D) neither a Misc. Expense nor Misc. Revenue.

Question

Quizplus · Accepted Answer

Cash Short and Over is a general ledger account used to track small discrepancies in cash transactions. If the balance is positive, it is recorded as a Misc. Revenue account, and if the balance is negative, it is recorded as a Misc. Expense account. Therefore, the correct answer is C, which indicates that it can be either a Misc. Expense or Misc. Revenue account depending on the balance in the account.

Cash Short and Over Is