The Petty Cash Box has 3 vouchers in it (one for taxi fare in the amount of $25, one for courier charges of one for office treats bought at Tim Hortons for $35). The accountant forgets to make a replenishment entry generating the financial statements for the period. The financial statement implications of this are that: Multiple Choice None of the other options is correct Income is correctly stated but assets are understated by $78 No Implications as the replenishment can occur anytime and is Independent of financial statement generation There is not enough Information provided to assess financial statement Impact Net Income is understated by $78

The Petty Cash Box has 3 vouchers in it (one for taxi fare in the amount of $25, one for courier charges of one for office treats bought at Tim Hortons for $35). The accountant forgets to make a replenishment entry generating the financial statements for the period. The financial statement implications of this are that: Multiple Choice None of the other options is correct Income is correctly stated but assets are understated by $78 No Implications as the replenishment can occur anytime and is Independent of financial statement generation There is not enough Information provided to assess financial statement Impact Net Income is understated by $78

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Urmila ben
Please explain with details also explain wrong options
A. Started a petty cash fund in the amount of $550.B. Replenished petty cash fund using the following expenses: Auto Expense $22, Office Expense $45, Postage Expense $24, Miscellaneous Expense $33. Cash on hand is $426.C. The company has decided to reduce the petty cash fund to $350. Record these transactions. If an amount box does not require an entry, leave it blank. A. - Select - - Select - - Select - - Select - B. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - C. - Select - - Select -
The company sells a 2/10, n/30 basis. Internet control quite weak, so the senior accountant in charge of the examination of the company's financial statements asked you to make a careful review of the Cash Receipts Book for the month of July, 2020, which is reproduced below. You are asked to compute the cash short or over.
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Suppose that on June 1, Cool Gyrations l, a disc jockey service, create a a petty cash with an impress balance of $400. During June, Ruth Mangan, fund custodian, signs the following petty cash ticket: On June 30, prior to replenishment, the fun contains these tickets plus cash of $246. The accounts affected cash payments are Office Supplies, Entertainment Expense l, and postage Expense .
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