The Cash Short and Over Ledger Account, Which Records the Difference

question 12

Multiple Choice

The cash short and over ledger account, which records the difference between the total of the cash register tape and the actual cash counted from the register:

• A) appears on the balance sheet as liability.
• B) is closed to the profit or loss summary account.
• C) is deducted from the bank account balance in the ledger.
• D) is included in the bank reconciliation.

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Definitions:

Stakeholder Theory

A concept in organizational management and business ethics that emphasizes the importance of considering the interests of all parties affected by business activities, not just shareholders.

Financial Interests

Refers to the ownership stake or economic benefits that an individual or entity has in an asset or a transaction.

Agency Costs

The costs associated with resolving conflicts of interest between company management and shareholders.

Sole Proprietorship

A business owned by a single individual.