If the petty cash fund is not replenished at the end of the accounting period, A) the income statement and the balance sheet will not be correct B) liabilities will be overstated on the balance sheet C) the cash account will be understated D) it indicates that the petty cash fund is probably short

If the petty cash fund is not replenished at the end of the accounting period, A) the income statement and the balance sheet will not be correct B) liabilities will be overstated on the balance sheet C) the cash account will be understated D) it indicates that the petty cash fund is probably short

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 3QY: Which of the following does not explain the differences between the bank statement balance and the...

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

give explanation

If the petty cash fund is not replenished at the end of the accounting period,
A) the income statement and the balance sheet will not be correct
B) liabilities will be overstated on the balance sheet
C) the cash account will be understated
D) it indicates that the petty cash fund is probably short

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If a petty cash account is short and the fund is replenished, then the account that would be debited is the expense account Cash Over and Short. Select one: True False
After removing the Change Fund, a cash shortage exists if: a.the Petty Cash Fund is greater than the Change Fund. b.the Change Fund is greater than the Petty Cash Fund. c.the day's receipts are greater than the register reading. d.the day's receipts are less than the register reading.
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.
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If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off? Explain.
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