Asked by Regina Orzechowski on May 14, 2024
Verified
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) an asset or liability depending on the balance in the account.
Misc. Expense
Miscellaneous Expense refers to small, infrequent costs that are not categorized under a specific heading in financial statements.
Misc. Revenue
Miscellaneous revenue refers to income generated from activities not central to a business’s main operations.
- Acquire knowledge of the Cash Short and Over account and its consequences for accounting procedures.
Verified Answer
AA
Ahmed Ameen MohamedMay 16, 2024
Final Answer :
C
Explanation :
Cash Short and Over is an account that can be classified as either a miscellaneous expense or a miscellaneous revenue account, depending on whether there is a shortage (expense) or overage (revenue) in the cash account.
Learning Objectives
- Acquire knowledge of the Cash Short and Over account and its consequences for accounting procedures.