Correct & Accurate answer What is the primary purpose of the petty cash fund?a) To record large purchasesb) To handle small, routine expensesc) To pay employee salariesd) To make bank deposits

Explanation of Petty Cash FundThe petty cash fund is a small reserve of cash that a business keeps…

Answered: What is the primary purpose of the…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 4MC

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Which of the following does not explain the differences between the bank statement balance and the customers cash balance? a. Deposit in transit b. Canceled checks c. An NSF check d. Errors e. Interest income
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.
Which of the following are found on the bank side of the bank reconciliation? A. NSF check B. interest income C. wire transfer into clients account D. deposit in transit
Petty cash is used to ________. A. avoid having to use checks frequently B. make small payments C. avoid having to retain receipts because the amounts are very small D. avoid having to get approvals due to the small amount of cash being paid
Is it required to have only one petty cashier or should the company appoint more than one person to administer the fund? Why?
What is the advantage of using technology in the internal control system? A. Passwords can be used to allow access by employees. B. Any cash received does not need to be reconciled because the computer tracks all transactions. C. Transactions are easily changed. D. Employees cannot steal because all cash transactions are recorded by the computer/cash register.
Answer
What is the purpose of setting up a petty cash fund? Select one: O O a. to allow cash for personal use b. to pay for all expenses c. to pay for regular operating expenses d. to pay for small, incidental expenses
What is the major purpose of an imprest petty cash fund? A. to effectively plan cash inflows and outflows B. To ease the payment of cash to vendors C. to determine the honesty of the petty cash cashier D. To effectively control cash disbursements
Which one of the following documents is used in the control of cash receipts?a. Purchase requisitionsb. Receiving reportsc. Canceled checks from customersd. Bank deposit slips
When a petty cash fund is used, which of the following is true? * A. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account. B. The reimbursement of the petty cash fund should be credited to the cash account. C. Entries that include a credit to the cash account should be recorded at the time that payments from the petty cash fund are made. D. The balance of the petty cash fund should be reported in the statement of financial position as a long-term investment.
12. When a petty cash fund is used, which of the following is true? A. Entries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made. B. The balance of the petty cash fund should be reported in the statement of financial position as a long-term investment. C. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account. D. The reimbursement of the petty cash fund should be credited to the cash account.

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What is the primary purpose of the petty cash fund? a) To record large purchases b) To handle small, routine expenses c) To pay employee salaries d) To make bank deposits