A petty cash fund is: A used to pay relatively small amounts. B established by estimating the amount of cash needed for disbursements of rela- tively small amounts during a specified period. C reimbursed when the amount of money in the fund is reduced to a predetermined minimum amount. D. all of the above.

A petty cash fund is: A used to pay relatively small amounts. B established by estimating the amount of cash needed for disbursements of rela- tively small amounts during a specified period. C reimbursed when the amount of money in the fund is reduced to a predetermined minimum amount. D. all of the above.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 8E: a. Describe the entries that have been posted to the following accounts after the Change Fund was...

See similar textbooks

Similar questions

Which of the following serve as the basis for recording appropriate expenses each time the fund is replenished ? a . Request letter from cash custodian b . Checks issued to cash custodian • c . Receipts d . None of the given options
1. Prepare a general journal entry to record establishing the petty cash fund. 2. Prepare a summary of petty cash payments. 3. Prepare the general journal entry to record the reimbursement and the decrease of the fund.
Which of the following is not normally decreased by a cash outflow transaction? a. Payroll Withholdings Payable b. Accrued Expense c. Deposits on Returnable Containers d. Deferred Revenues
Which of the following is an electronic funds transfer system (EFTS) service? Group of answer choices a. Overdraft protection b. Automatic transfer program c. Preauthorized payments d. Stop payment e. Cashier's checks
(Based on Appendix 7A) How is a petty cash fund established? How is the fund replenished?
When a depositor can take out more than the amount of funds, he/she has within an account is known as: O a. Discounted Bill of Exchange O b. Overdraft Facility OC. Term Loan O d. Money at call
Define Restricted Cash and Compensating Balances.
What Petty Cash involves, choose the best answer: Select one: O a. Establishing the fund, making check payment and never replenish the fund b. Establishing the fund, making payment and replenish the fund c. Establishing the fund, making check payment and replenish the fund d. Borrow the fund, making payment and replenish the fund
If a petty cash account is short and the fund is replenished, then the account that would be debited is the expense account Cash Over and Short. Select one: True False
10. Who, among the following, limits the size of the expenditure to be paid from petty cash fund? a. Manager b. Customer c. Petty cash custodian d. Supplier
Which of the following is a means of using receivables to obtain immediate cash? a. Factoring b. Pledging c. Assignment d. All of the above
After removing the Change Fund, a cash shortage exists if: a.the Petty Cash Fund is greater than the Change Fund. b.the Change Fund is greater than the Petty Cash Fund. c.the day's receipts are greater than the register reading. d.the day's receipts are less than the register reading.