Given the Following Information What Is the Amount That Needs to Be Recorded for }

question 152

Multiple Choice

Given the following information:
$$\begin{array} { l r l r } \text { Petty cash balance: } & \$ 530.00 & \text { Courier receipt: } & \$ 74.22 \\\text { Postage receipt: } & \$ 25.00 & \text { Office Supplies receipt: } & \$ 95.64 \\\text { Business Meal receipt: } & \$ 54.21 & \text { Cash on hand at the end of the month: }& \$ 299.71\end{array}$$
What is the amount that needs to be recorded for cash over and short?

• A) debit $23.29
• B) credit $23.29
• C) debit $18.78
• D) no cash over and short is necessary
• E) credit $18.78

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, also known as stockholders' equity or owner's equity.

Recoverable Amount

The higher value between an asset's fair value less costs to sell and its value in use.

Deferred Tax Liability

A tax obligation that a company has incurred but is not yet required to pay, often arising from differences between accounting methods for financial statements and tax purposes.

Associate

A company in which another company owns a significant portion (usually between 20% and 50%) but not a majority stake, providing it with significant influence.