Question

Which of the following is a correct statement regarding the Cash Shortage account? A) The account...

Which of the following is a correct statement regarding the Cash Shortage account?

A) The account normally has a credit balance.

B) If the recorded cash exceeds the cash counted, a shortage exists.

C) It is reported as a miscellaneous revenue.

D) It is reported on the balance sheet.

Inventory reports the:

A) cost of goods available for sale.

B) cost of merchandise purchased and sold.

C) cost of goods that have been delivered to customers.

D) selling price times the quantity of goods sold.

Which of the following is a correct statement regarding the Cash Shortage account?

A) The account normally has a credit balance.

B) If the recorded cash exceeds the cash counted, a shortage exists.

C) It is reported as a miscellaneous revenue.

D) It is reported on the balance sheet.

Business   Accounting   
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Homework Answers

Answer #1

1. Correct statement regarding the Cash Shortage account,

A) The account normally has a credit balance.

In case of cash shortage which means cash payments are exceeds cash receipts, then the cash accounts shows a credit balance.

2. Inventory reports the,

A) cost of goods available for sale

Inventory reports the all the costs of goods from the beginning till it is ready to sale. Therefore , the value of inventory would be the cost of goods available for sale.

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