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:

Unamortized Premium

The portion of the premium paid over the par value of a bond that has not yet been expensed in the company's financial statements.

Carrying Amount

The book value of assets and liabilities on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Interest-Bearing Note

A debt instrument that specifies the amount borrowed, interest rate, and maturity date, obligating the borrower to pay interest.

Bond

A form of interest-bearing note used by corporations to borrow on a long-term basis.