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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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