A Debit Balance in the Cash Short and Over Account

question 167

Multiple Choice

A debit balance in the Cash Short and Over account at the end of the accounting period appears:

• A)on the income statement as a miscellaneous expense.
• B)on the balance sheet as a prepaid expense.
• C)on the balance sheet as a current liability.
• D)on the income statement grouped with cost of goods sold.

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Definitions:

Wage Rates

The amount of money received per hour, day, or another unit of time for labor services.

Nominal Wages

Wages that are paid to employees not adjusted for inflation, representing the dollar amount received.

Real Wages

Wages adjusted for inflation, representing the purchasing power of the income received from work.

Human Capital

The combined abilities, expertise, and non-physical assets of people that can be leveraged to generate economic worth.