If the Ending Balance in the Cash Short and Over

question 98

True/False

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

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Definitions:

Unearned Fees

Income received by a company for goods or services yet to be provided or delivered, recorded as a liability on the balance sheet until earned.

Adjusting Entry

A financial record created during the closing of an accounting cycle to appropriately distribute revenues and expenses to their respective periods.

Journalize

The process of recording transactions in a company's journal, detailing the financial activities and their impact on accounts.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.