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

Q: Describe about petty cash fund.

A:

Q: 1. Identify two (2) ways an employee might misappropriate cash receipts.

A: Cash receipts refers to the evidence or proof of the purchase issued when the purchaser has paid in…

Q: The type of account and normal balance of Petty Cash is a(n) Select one: A. asset, debit B.…

A: Current option is A i.e. asset, debit

Q: The petty cash fund eliminates the need for a bank checking * .account

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: REQUIRED: IDENTFY ONE ACCOUNT AND ONE ASSERTION FOR EACH CONDITION (IDENTIFY EITHER THE DEBIT OR…

A: Journal entries: It is the duty of the accountant to record business economic and non-economic…

Q: A firm is considering investing in a project that is expected to generate total free cash flows of…

A: The discounted cash flow valuation method is a frequently employed method wherein all the future…

Q: Identify each of the following reconciling items as part of the cash reconciling process as: (A)…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: If the petty cash fund is not replenished at the end of the accounting period, A) the income…

A: Petty cash fund is a tiny sum of money that each department may have for the purpose of paying the…

Q: The purpose of a petty cash fund is toa. Provide a convenient form of payment for the company’s…

A: Petty cash fund:   Petty cash fund is a fund established to pay insignificant amounts like postage,…

Q: A special cash fund used to make small payments that occur frequently is called a(n) ____.…

A: Market funds are those funds which are invested in the short term debt securities like commercial…

Q: 0.Which of the following items would normally be EXCLUDED from the amount to be reported as cash on…

A: Solution: Following items would normally be EXCLUDED from the amount to be reported as cash on a…

Q: Which of the following items should not be included in the Cash? O A. Petty cash and change funds…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Effective internal control over accounts receivable ensures all of the following except: Select one:…

A: The question is about effective internal control over accounts receivable, which refers to the…

Q: 3. Companies include postdated checks and petty cash funds as cash.      TRUE       FALSE

A: Petty Cash funds: It is the cash of the company presented in small amounts in the company. It is…

Q: Which of the following is issued by a company to the responsible staff in order to establish a petty…

A: The petty cash fund is established for daily basis small cash expenses of the business.

Q: If a petty cash account is short and the fund is replenished, then the account that would be debited…

A: Petty cash is the cash set aside that is maintained in a business for petty expenses such as office…

Q: When the amount of cash in the cash register exceeds the amount in the cash register tapes, the…

A: Cash Over and Short account is used to record the discrepancy between firms' reported sales figures…

Q: Which of the following is not used by a company to manage cash receipts efficiently? A-…

A: The company requires cash for the long-term and short-term requirements. Efficient cash management…

Q: A small amount of cash kept by a business on its premises to make occasional small payments in cash…

A: A small amount of cash is usually kept by businesses aside for the petty expenses incurred by the…

Q: 30.The concept and accounting for cash discounts and trade discounts are      a. always the same. b.…

A: Introduction:- Cash discount is offered by the seller to the buyer on the invoice amount at the time…

Q: Which of the following is normally recorded in the cash disbursement journal? a. Payment made to…

A: Cash Disbursement Journal: It is a record kept by the accountants of all the expenditures made by…

Q: The petty cash fund account under the imprest fund system is debited A. only when the fund is…

A: 1. Petty Cash - Petty Cash account is amount maintained by the organization to handle petty (small)…

Q: Which of the following statements in relation to accounting for petty cash fund is false? Group of…

A: The petty cash fund maintains the cash balance for transactions such as stationery, or other minor…

Q: Thomas Company is considering two mutually exclusive projects. The​ firm, which has a cost of…

A: Net present value and internal rate of return are the modern methods of capital budgeting that are…

Q: 7. Which of the following should not be considered cash for financial reporting purposes?    a.…

A: Cash balance for financial reporting purpose means those instruments or assets, which are either in…

Q: A basic procedure of internal control over cash receipts is that the deposit of the cash and the…

A: Internal controls is the procedure applicable to ensure the operational efficiency and correct…

Q: Cheque deposited for collection was honoured and recorded properly by the bank will a. Increase in…

A: Bank reconciliation: It is a statement which is prepared to reconcile the balance as per cash book…

Q: An investment of $70,000 yields a net annual income of $15,000 for 6 years. What is the internal…

A:

Q: BANK TRANSFER SCHEDULE DISBURSEMENT Recorded in RECEIPT Transfer Paid by bank Recorded in books 1/4…

A: How cash balance reacts to disbursements and receipt of cash? Disbursements of cash: Decrease in a…

Q: 19-Petty cash is shown in the Balance sheet as a. Fixed asset b. Current liabilities c. Current…

A: Petty Cash: The petty cash come under the category of cash which is a  type of current asset that…

Q: Statement I:  In preparing proof of cash, the bank has not yet taken up deposits in transit at the…

A: A proof of cash refers to the concept of rechecking and resolving items in a bank reconciliation of…

Q: debit Cash Over and Short for $4. C.

A:

Q: Who is responsible for petty cash fund? a. Petty cash custodian b. Chief accountant c. Accounts…

A: A petty cash fund is small amount of company cash that is kept for day to day small expenses like…

Q: Define restricted cash and indicate how it should bereported on the balance sheet

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: Unreleased checks a Are outstanding checks b. Are treated as certified checks c. Are part of the…

A: Checks have no impact on the payor's cash balance as shown on the bank statement because the bank…

Q: Which of the following is a true statement about petty cash account? a. It is a current liability…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: at the time of replenishment, why are the totals of individual expenses debited? explain the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the purpose of setting up a petty cash fund? Select one: O O O a. to allow cash for personal…

A: Answer:- Petty cash fund:- A petty cash fund is a modest cash reserve used to cover miscellaneous…

Q: Which of the following items would normally be EXCLUDED from the amount to be reported as cash on a…

A: Statement of financial position is the one on which the company's assets and liabilities are…