The Debit Balance in Cash Short and Over at the End

question 21

Multiple Choice

The debit balance in Cash Short and Over at the end of an accounting period is reported as

• A) an expense on the income statement
• B) income on the income statement
• C) an asset on the balance sheet
• D) a liability on the balance sheet

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Definitions:

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.

Ending Inventory

The cumulative worth of products on offer for sale when an accounting cycle ends.

Gross Margin

The gap between the income from sales and the expense of goods sold, represented as a proportion of sales income.

Net Sales

The revenue from sales of goods or services after deducting returns, allowances, and discounts.