Over and short is a term that is used in the accounting scenario that means the actual difference between the estimated and the actual figures of production, financial figures or any other estimates. Another definition of over and short can be given as the difference between the examined and reported figures in any kind of accounting scenario. The example of the over and short situation in an accounting situation is that where the recorded sales are different from the actual and the reported sales. The discrepancy in this situation where there is a difference occurring in the examined or reported figures and the actual figures is called over and short condition.
Over and short is sometimes deliberately created by the organization or the business entities by themselves in order to show and order present better numbers in their financial statements. In such a situation this means that the over and short situation is a game of number tampering where numbers are changed on the will of senior management or the central figures of the organization for the overall betterment of the organization. However in most of the cases the difference in the estimated and the actual figures is not due to the number tampering and it’s majorly due to the factor of the human error. Sometimes the employees handling reports and receipts and are responsible for entering numbers and data mishandle the numbers that may result in the formation of errors that ultimately lead to the difference between the estimated and the actual accounting figures.
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