An Income Statement Account Used to Record Cash Overages and Cash

question 127

Multiple Choice

An income statement account used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is the

• A) Cash Lost account
• B) Bank Reconciliation account
• C) Petty Cash account
• D) Cash Over and Short account
• E) Cash Receivable account

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Definitions:

Compensation Contracts

Agreements that outline the salary, bonuses, and other forms of payment an employee receives from an employer.

Price Ceiling

A regulation that sets the maximum allowable price for a particular good or service, intended to prevent sellers from charging high prices during demand spikes.

Government Intervention

Actions taken by government to affect the economy, markets or societal issues, which can include regulations, subsidies, and taxes.

Positive Externalities

These are benefits that a transaction or activity provides to those not involved in the transaction or activity.