If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as "Other Income" on the income statement. Please explain with full explanation.  a. True b. False

Q: Compared to the accrual basis of accounting, the cash basis understates income by the net decrease…

A: when net income has to be computed as per cash basis, the revenues and expenses actualle received or…

Q: The estimated cash receipts include total receipts from sales on account, interest revenue less…

A: Cash flows can be defined as the cash receipts and cash payments of a business from its operating,…

Q: Does a payment on a liability account with cash show up in the statement of cash flows?

A: Cash Flow Statement - Under Cash Flow there are three type activities involved - Operating…

Q: The cash account in the company's ledger is a(n) a.liability with a normal credit balance…

A: All expenses have a debit balance and income have a credit balance. All assets such as cash,…

Q: Which of the following transactions does not affect cash during a period?a. A write-off of an…

A: Allowance for Doubtful Accounts: Allowance for doubtful accounts is determined as the reduction in…

Q: Which of the following does not appea in a statement of cash flows? * O Cash sales O Credit sales…

A: The cash flows statement shows the cash inflows and outflows during the year from operating,…

Q: The revenue recognition principle states that all types of incomes should be recorded or recognized…

A: We have the following question: The revenue recognition principle states that all types of incomes…

Q: The normal balance of an account is on the Side represented by decreases in the account balance O…

A: Answer The correct option is C)Side represented by increase in the account balance Explanation An…

Q: hen a company receives cash from customers before earning the revenue,----------------------will be…

A: As per revenue recognition principle a revenue is recognized only when the service has been provided…

Q: The time between cash disbursement and cash collection is which of the following? A- accounts…

A: Solution-              The cash to cash cycle is the fundamental quantity between once a business…

Q: A cash paid for a borrowing made earlier affects which of the following accounts? a. Cash and Notes…

A: Solution- Once you pay the full amount due, your account is paid in full. You have effectively…

Q: Which account is least likely to be debited when revenueis recorded?a. Accounts Payableb. Accounts…

A: Revenue account is credited when revenue is recorded.

Q: What are Accrued expenses?     Always recorded in cash-basis accounting     Expenses from an…

A: Accrued expenses means the expense which has been due but not paid.             There might be some…

Q: A "sale on account" results in a debit to: Accounts Receivable Cash O Capital Accounts Payable

A: Solution....     Sales on Account results in debit of ?

Q: If the balance in Prepaid Expenses increased during theyear, what action should be taken on the…

A: Increase in Prepaid Expense means that cash is paid for the future expenses in advance.

Q: Which of the following is not an operating cash flow? Select one: a. Payment of income tax b.…

A: Cash flows in the business means cash inflows and cash outflows of business for the particular…

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts.…

A: Definition: Rules of Debit and Credit: Following rules are followed for debiting and crediting…

Q: Using the allowance method, the effect on the current year’s financial statements of writing off an…

A: Under the allowance method, uncollectible account receivables are to be estimated for future period…

Q: What information would you find in a statement of cashflows that you would not be able to get from…

A:

Q: The debit balance in Cash Short and Over at the end of an accounting period is reported as

A: Option a is the correct answer

Q: If the indirect method is used to calculate net cash provided by operating activities, adecrease in…

A: Cash flow statement: To know the cash position in the organisation statement of cash flows is…

Q: debit or credit? accounts payable unearned revenue prepaid expense repairs and maintenance…

A: Assets are recorded in Balance Sheet and have debit balances and liabilities have credit balances.…

Q: What is the impact on the accounting equation when an accounts receivable is collected?A. both sides…

A: Accounting equation is one of the important concept used in accounting. Three elements of accounting…

Q: Which of the following is true regarding 'Credit Balance' in ledger account? O a. All options are…

A: Option d is correct.

Q: Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…

A: Goods or services provided by the business can be sold for cash or on account. Cash sales are sales…

Q: Under the accrual basis of accounting, cash receipts and disbursements may _____ the period in which…

A: Accrual system of accounting is one where expenses and incomes are recorded in P/L statement as and…

Q: A debit side entry must have a corresponding credit side entry. The normal balance of an account…

A: Solution Debit and credit are used in company bookkeeping in order for its books to balance.

Q: The total credit equal to the total of debit in ledger account is called: O a. Credit balance O b.…

A: The ledger is prepared using journal entries.

Q: Assume a company has a $350 credit (not cash) sale. How would the transaction appear if thebusiness…

A: As per accrual concept of accounting, all incomes and expenses of the particular period should be…

Q: Cash has a normal debit balance.  What does this mean in accounting?  Be specific and provide as…

A: Current assets are those assets that can be converted into cash within a year whereas noncurrent…

Q: Prepare the entries on the appropriate dates to record the declaration and payment of the cash…

A: As soon as Dividend is declared the company has to record the liability and on Payment the liability…

Q: conversion from cash basis to accrual basis of an increase in accounts or not

A: Step 1 Choosing a record-keeping system is an important decision for agricultural producers. The…

Q: For part 2, do "written off" and "previously written off accounts collection" fall under debit or…

A: Allowance for doubtful accounts: Allowance for doubtful accounts refers to the allowance prepaid or…

Q: Each of the following transactions will be shown as either an increase in cash or a decrease in cash…

A: 1.Increase in cash- If current assets decrease, Current liabilities increases, or cash inflow with…

Q: The revenue recognition principle states that revenue should be recorded in the same period as the…

A: Revenue recognition principle states that the revenue should be recorded in the same period as the…

Q: The normal balance of an account is on the Debit side of the account Side represented by increase…

A: An account balance usually represents money in monetary terms  an account balance is either a debit…

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts.…

A: Accounts payable can be defined as the current liability whose amount payment is the obligation of…

Q: If the ending balance in accounts payable increases from one period to the next, which of the…

A: Introduction: Accounts payable (AP) is a balance-sheet liability and a short-term debt in which a…

Q: Cash realizable value is calculated as Accounts Receivable plus Allowance for Doubtful Accounts O…

A: Cash realizable value is the amount of cash that is receivable from the accounts receivable.

Q: Which of the following account is debited when account payable is converted into note payable?…

A: Liabilities have a credit balance, So when liabilities converted then they should be debited.

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.