The Cash Over and Short account: Multiple Choice a. Can never have a debit balance. Can never have a credit balance. b. Is used when the cash account reports a credit balance. c. Is used to record the income effects of errors in making change and/or processing petty cash transactions. d. Is not necessary in a computerized accounting system.

The correct answer is letter "C": Is used to record the income effects of errors in making change and/or processing petty cash transactions.

Explanation:

The Cash Over and Short account is used to register a company's cash shortages and overages. It is an Income Statement account used by firms in front of inaccurate differences at the moment of replenishing a petty cash fund. In such a case, the Cash Over and Short account is useful to measure employee's cash management efficiency.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

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