A Cash Over and Short Account Is

question 3

Multiple Choice

A Cash Over and Short account is

• A) not generally acceptable under Canadian GAAP.
• B) debited when the sum of the receipts and the cash in the fund is more than the imprest amount.
• C) debited when the sum of the receipts and the cash in the fund is less than the imprest amount.
• D) a contra account to Cash.

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Definitions:

NSF Check

A cheque that cannot be processed because the writer's account lacks sufficient funds, standing for "Non-Sufficient Funds."

Debit Memorandum

A document or entry that records an adjustment or reduction in expenses payable to a vendor or an increase in inventory cost.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the correct periods.

NSF Check

A check that cannot be processed because the account on which it is drawn does not have sufficient funds.