When a petty cash fund is used, which of the following is true? A. Entries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made. B. The balance of the petty cash fund should be reported in the statement of financial position as a long-term investment. C. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account. D. The reimbursement of the petty cash fund should be credited to the cash account.
When a petty cash fund is used, which of the following is true? A. Entries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made. B. The balance of the petty cash fund should be reported in the statement of financial position as a long-term investment. C. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account. D. The reimbursement of the petty cash fund should be credited to the cash account.
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 1QY
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12. When a petty cash fund is used, which of the following is true?
A. Entries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made.
B. The balance of the petty cash fund should be reported in the statement of financial position as a long-term investment.
C. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account.
D. The reimbursement of the petty cash fund should be credited to the cash account.
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