If the Ending Balance in the Cash Short/Over Account Is

question 170

True/False

If the ending balance in the Cash Short/Over account is a debit, it indicates that cash shortages have exceeded cash overages for the period.

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Definitions:

Act Of Nature

Events caused by natural forces that are beyond human control, like earthquakes, hurricanes, or floods, affecting businesses and individuals.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Manufacturing Overhead

Manufacturing overhead includes all the indirect costs associated with producing goods, other than direct materials and direct labor, such as utilities, depreciation, and maintenance expenses.

Direct Materials

Raw materials that are directly consumed in the manufacturing of a product and are easily identifiable in the finished product.