An income statement account that is used to record cash overages and cash shortages arising from petty cash transactions or from errors in making change is titled: A) Cash Lost B) Bank Reconciliation. C) Petty Cash. D) Cash Over and Short. E) Cash Receivable.

Question

Business

Goldie

7 June, 18:09

An income statement account that is used to record cash overages and cash shortages arising from petty cash transactions or from errors in making change is titled: A) Cash Lost B) Bank Reconciliation. C) Petty Cash. D) Cash Over and Short. E) Cash Receivable.

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Kaylee Barber · Answer 1

Cash Over and Short

Explanation:

An income statement account that is used to record cash overages and cash shortages arising from petty cash transactions or from errors in making change is titled Cash Over and Short.

By definition, 'Cash Over and Short' is an account within the general ledger of a company in the income statement in which shortages or overages of cash is posted.

At the end of the period, the balance in the account (whether debit or credit) will determine what side of the income statement it will appear.