Given the Following Information What Is the Amount of Cash Over and Short?
A)

question 91

Multiple Choice

Given the following information: $\begin{array}{lrlr}\text { Petty cash balance } & \$ 450.00 & \text { Courier receipt } & \$ 82.50 \\\text { Postage receipt } & \$ 48.00 & \text { Office Supplies receipt } & \$ 56.22 \\\text { Business meal receipt } & \$ 102.34 & \text { Cash on hand at the end of the month } & \$ 76.21\end{array}$
What is the amount of cash over and short?

• A) Debit $84.73.
• B) Credit $84.73.
• C) Debit $160.94.
• D) Credit $160.94.
• E) No cash over or short would be recorded.

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Definitions:

Collection Delay

The time lag between when a payment is made by a customer and when the funds are available to the recipient.

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, involving the collection of payments directly at a postal box and swiftly depositing them into the company's bank account.

Treasury Bills

Government-issued securities with maturity of up to a year, offered below their nominal value.

Collection Time

The duration it takes for a business to receive payments owed by its customers after a sale has been made.