(a) Introduction: A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level . If company A should implement controls over petty cash fund.

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Answer 1

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

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Which one of the following statements is true? a.Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account. b.Petty cash can be substituted for a chequing account to expedite the payment of all disbursements. c.The person handling the cash should also prepare the bank reconciliation. d.Sound internal control practice dictates that cash disbursements be made by cheque, unless the disbursement is very small.

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…

Answer 2

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

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Answer 3

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

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Answer 4

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

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Answer 5

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

Answer 6

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

Answer 7

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

Answer 8

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

Answer 9

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 5 - Prob. 1SEQ Ch. 5 - Prob. 2SEQ Ch. 5 - Prob. 3SEQ Ch. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQ Ch. 5 - Prob. 1CDQ Ch. 5 - Prob. 2CDQ Ch. 5 - Prob. 3CDQ Ch. 5 - Prob. 4CDQ Ch. 5 - Prob. 5CDQ

Solution Summary: The author explains how a petty cash fund is operated to pay relatively small amounts of cash expenses in business. The controls include responsibility to one person, maintaining records, providing support documents, and periodic review of funds.

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