If Cash Over and Short Has a Debit at the End

question 131

True/False

If Cash Over and Short has a debit at the end of the period, the dollar amount represents miscellaneous revenue.

---

Definitions:

Allowance

An accounting adjustment that reduces the value of an asset or increases a liability to reflect probable future costs.

Net Credit Sales

The total revenue from sales made on credit, minus any returns or allowances, reflecting the actual credit sales revenue generated by a business.

Uncollectible Accounts

Accounts receivable that are unlikely to be paid by customers and are considered bad debts.

Cash Realizable Value

The amount of cash expected to be received from assets or receivables after accounting for discounts or allowances.