Cash Short or Over Is an Expense Account When It

question 70

True/False

Cash Short or Over is an expense account when it has a debit balance.

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to external parties.

Residual Equity

The amount of equity remaining for shareholders after all liabilities have been deducted from total assets.

Owner's Equity

The assets left over in a business once liabilities are cleared, showing the equity of owners or shareholders.

Spoils

Goods that are damaged or unusable during the production process and cannot be sold to customers.