Asked by Matthew Knudsen on May 05, 2024
Verified
If the balance in Cash Short and Over at the end of a period is a credit, it indicates that cash shortages have exceeded cash overages for the period.
Cash Short and Over
An account that records discrepancies between actual cash received and the expected amount, often due to errors or theft.
Cash Shortages
Instances when the actual cash available is less than the amount expected or needed.
Cash Overages
Excess of actual cash received over the expected amount, often caused by either errors in transactions or more sales than recorded.
- Comprehend the principle of Cash Short and Over and its application in financial reports.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
False
Explanation :
If the balance in Cash Short and Over is a credit, it indicates that cash overages have exceeded cash shortages for the period.
Learning Objectives
- Comprehend the principle of Cash Short and Over and its application in financial reports.