The Cash Over and Short Account

question 182

Multiple Choice

The Cash Over and Short account:

• A)Is used to record a credit balance in the cash account.
• B)Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and from missing petty cash receipts.
• C)Is not necessary in a computerized accounting system.
• D)Can never have a debit balance.
• E)Can never have a credit balance.

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Definitions:

Low-Cost Items

Products that are sold at a minimal expense, often targeting budget-conscious consumers.

Convenience Product

Goods that the consumer purchases frequently, immediately, and with minimal comparison and buying effort.

Shopping Product

A type of product that consumers purchase after comparing quality, price, and style from several sellers.

Specialty Product

A product that is characterized by its unique attributes, high level of quality, or brand identity, often leading consumers to put forth a significant effort in purchasing it.