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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14MC: Which is not a section of the cash budget? cash receipts cash disbursements allowance for...

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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.
A special cash fund used to make small payments that occur frequently is called a(n) ____. a.operating expenses fund b.market fund c.change fund d.petty cash fund
(Based on Appendix 7A) How is a petty cash fund established? How is the fund replenished?
If the cash on hand is greater than the total of the change fund amount plus the cash sales per the cash register, then cash is over. cash is short. miscellaneous expense is recorded. Cash Over and Short is debited.
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 true? a. The Petty Cash account is debited when the fund is replenished. b. The imprest petty cash system in effect adheres to the rule of disbursement by check. c. Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year-end. d. All of these answer choices are not true.
Which of the following serve as the basis for recording appropriate expenses each time the fund is replenished? a. Receipts b. Request letter from cash custodian C Cheques issued to cash custodian d. None of the given options
Effective cash management and control includes all of the following excepta. the use of a petty cash fund.b. bank reconciliations.c. purchase of stocks and bonds.d. short-term investments of excess cash.
Entries are made to the petty cash account when Select one: A. establishing the fund B. recording shortages in the fund C. replenishing the petty cash fund D. making payments out of the fund
Entity A maintains a petty cash fund. At any given point of time, the cash on hand and the petty cash vouchers must be equal to the ledger balance of the petty cash fund. If these are not equal, the difference is either shortage or overage. This system of handling petty cash fund is called Imprest system Fluctuating balance system Pretty cash system Imprest System According to GAM for NGAs, the establishment of a petty cash fund Requires the approval of the head of the agency Requires the approval of the chief accountant Requires the approval of the office of the president Does not require any formal approval because petty cash funds are likely to be immaterial The “loans Receivable account is most likely to be used in the books of accounts of which of the following government agencies? COA NIA BTr All of these Entity A, a government entity, purchases inventories. To record a purchase, Entity A would most likely debit the (a) Inventory account Purchases account Expenses…
The Undeposited Funds account contains: A) Only partial payments received from customers B) Funds received from customers but not deposited in the bank C) Funds the company owes vendors D) Petty Cash funds