At the End of the Day, the Cash Register's Record

question 14

Multiple Choice

At the end of the day, the cash register's record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales is

• A) Debit Cash $1,245; Credit Sales $1,245.
• B) Debit Cash $1,245; debit Cash Over and Short $5; credit Sales $1,250.
• C) Debit Cash $1,250; credit Sales $1,250.
• D) Debit Cash $1,250; credit Sales $1,245, credit Cash Over and Short $5.
• E) Debit Cash Over and Short $5, credit Sales $5.

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Definitions:

Actuarial Gains and Losses

Gains or losses that arise from the adjustment of assumptions or the application of actuarial models differently over time in evaluating a company's pension liabilities.

Projected Benefit Obligation

Represents an estimate of the total amount to be paid to participants in a defined benefit pension plan, based on employees' service and salary history.

Prior Service Cost

The cost associated with retroactive benefits granted in a pension plan amendment, recognized over the service lives of affected employees.

Plan Assets

Assets that are specifically earmarked to pay pension benefits, typically held in a pension fund.