Answered: The entry to establish the Change Fund…

Business

Accounting

The entry to establish the Change Fund includes which of the following?

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 7QY

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

The entry to establish the Change Fund includes which of the following?

Select one:

Debit to Change Fund

Credit to Petty Cash

Debit to Petty Cash

Credit to Change Fund

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Accounting for Cash and cash equivalents

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