Explain Two Common Scenarios Where Overdischarge Can Occur

question 20

Essay

Explain two common scenarios where overdischarge can occur.

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Definitions:

Cash Short and Over

An account that stores any discrepancies between the expected cash count and the actual amount of cash present, reflecting errors or theft.

Other Income

Revenue generated from activities that are not part of a company's primary business operations, including interest, dividends, and gains from asset sales.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period.

Separating Responsibilities

A risk management technique that involves dividing tasks and authorities among different individuals or groups to reduce the risk of error or fraud.