Answered: 11. The expenditures of a petty cash…

Business

Accounting

11. The expenditures of a petty cash fund are not recorded in the accounting records until the fund is replenished.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 4MC

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11. The expenditures of a petty cash fund are not recorded in the accounting records until the
fund is replenished.

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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.
23.At the end of the accounting period, the petty cash fund/drawer showed petty cash vouchers for expenses paid from the fund that have not been reimbursed. If no adjusting entry is made at year end, a. cash will be understated and expenses will be overstated. b. cash will be overstated and expenses will be understated c. cash and net income will be understated. d. cash and expenses will be overstated.
1A _________________ is a form of cash misappropriation scheme where employees steal incoming funds prior to being recorded in the accounting records.
7. Which of the following should not be considered cash for financial reporting purposes? a. Petty cash funds and change funds b. Money orders, certified checks and personal checks c. Coin, currency and available funds d. Post-dated checks and IOUs
The petty cash fund account under the imprest fund system is debited A. only when the fund is created B. when the fund is created and every time it is replenished C. when the fund is created and when the size of the fund is increased D. when the fund is created and when the fund is decreased.
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.
To establish a petty cash fund, which account is debited ?
9. Petty cash fund is a. Separately classified as current asset b. Money kept on hand for making minor disbursements of coin and currency rather than by writing checks c. Set aside for the payment of payroll d. Restricted cash
(Supplement 5A) What are the arguments for and againstreplenishing all petty cash funds at the end of eachaccounting period?
12. Which of the following does not belong to the group? Petty cash fund Accounts Receivable Office Supplies Payroll fund