College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 7DQ
- 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.
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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
To establish a petty cash fund, which account is debited ?
2. Which of the following is issued by a company to the responsible staff in order to establish a petty cash fund?
a.
Cheque payable
b.
Promissory note
c.
Demand draft
d.
Cheque receivable
Chapter 6 Solutions
College Accounting (Book Only): A Career Approach
Ch. 6 - Prob. 1QYCh. 6 - Prob. 2QYCh. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QYCh. 6 - Prob. 6QYCh. 6 - Prob. 7QYCh. 6 - Prob. 8QYCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQ
Ch. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - a. Why would a business use a Petty Cash Fund? b....Ch. 6 - Prob. 8DQCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - a. Describe the entries that have been posted to...Ch. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 1PBCh. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Prob. 1ACh. 6 - Prob. 2ACh. 6 - You work as a cashier for a service business. Some...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Petty Cash Fund Question, When it comes to making payments from the petty cash fund, why isn't there an accounting/journal entry for it? Please Explain.arrow_forward12. 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.arrow_forwardThe main purpose of factoring accounts receivable is a. To invest accounts receivable in another business b. To meet immediate cash needs c. To create an additional guarantee of collection d. To establish a legal proof for future usearrow_forward
- 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.arrow_forwardHow do I prepare the journal entry to establish the petty cash fund?arrow_forwardEntries are made to the petty cash account when Select one: A. establishing the fund B. recording shortages in the fund C. replenishing the petty cash fund D. making payments out of the fundarrow_forward
- The debit recorded in the journal to reimburse the petty cash fund is to Select one: A. Cash B. Petty Cash C. various accounts for which the petty cash was disbursed D. Accounts Receivablearrow_forwardWhy does the bank treat an account balance as a Credit when there is money in the account, while in the general ledger cash records of the business, the balance would show as a Debit?arrow_forwardThe purpose of a petty cash fund is toa. Provide a convenient form of payment for the company’s customers. b. Pay employee salaries at the end of each period. c. Provide cash on hand for minor expenditures. d. Allow the company to save cash for major future purchases.arrow_forward
- Describe an entry needed to establish a $50 petty cash fund and an entry to reimburse the fundarrow_forwardWhich one of the following documents is used in the control of cash receipts?a. Purchase requisitionsb. Receiving reportsc. Canceled checks from customersd. Bank deposit slipsarrow_forwardWhen a petty cash fund is first established and reimbursed, the journal entries to record the transactions will debit the cash account. True Falsearrow_forward
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