Answered: It is required to have only one petty…

It is required to have only one petty cashier, of the company should appoint more than one person to administer the fund. Why?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 10Q: Is it required to have only one petty cashier or should the company appoint more than one person to...

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It is required to have only one petty cashier, of the company should appoint more than one person to administer the fund. Why?

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Why is it important to have a petty cash fund available in a company?
There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.
a. Why would a business use a Petty Cash Fund? b. Describe the entry needed to establish a 50 Petty Cash Fund and an entry to reimburse the fund.
Review the following statements regarding a petty cash fund used in a business. Select the one that is correct. O A petty cash fund is controlled by top management. O The cashier of a fund will write checks for small payments like postage, supplies and deliveries, O Only the petty cashier is responsible for paying cash from the fund. OA check written against the fund is cashed when the fund is replenished.
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
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…
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19 ______________ has the authority to make payments from the fund that conform to prescribed management policies. a. The petty cash custodian b. Treasurer c. Accountant d. Cashier Clear my choice
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