Question

1. 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

2. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts?

a. debit Notes Receivable; credit Cash

b. debit Cash; credit Miscellaneous Income

c. debit Cash; credit Notes Receivable

d. debit Accounts Receivable; credit Cash

3. Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)

a. deduction from the balance per company's records

b. addition to the balance per bank statement

c. deduction from the balance per bank statement

d. addition to the balance per company's records

Answer 1

1.Option a

The debit balance in Cash short and over at the end of the Accounting period is reported as an expense on the income statement

2. Option C.

Debit Cash

Credit Notes receivable

3. Option a

Deduction from the balance as per company records