International Association of Accessibility Professionals (IAAP) Certified Administrative Professional (CAP) Practice Exam

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What describes the term 'cash short and over'?

A method of projecting future cash flows.
An income statement account tracking funds available in a cash account.
A type of long-term investment.
An expense category for corporate accounting.

The correct answer is: An income statement account tracking funds available in a cash account.

The term 'cash short and over' refers to an account used in accounting to track discrepancies between the actual cash on hand and the amount of cash recorded in the cash register or cash account during a specific period. This often occurs in retail settings where cash transactions are frequent, leading to potential differences due to errors, theft, or other anomalies. When funds are short, meaning there is less cash than what should be there according to the records, it is considered a loss, while an overage indicates more cash than expected. Tracking these discrepancies is essential for maintaining accurate financial records and addressing potential issues regarding cash handling. While projecting future cash flows is crucial for financial planning, and long-term investments and expense categories are vital parts of broader accounting practices, they do not specifically define the 'cash short and over' concept, which is focused particularly on managing cash discrepancies and ensuring the accuracy of cash handling procedures.