Which of the Following Is a CORRECT Statement About the Petty

question 102

Multiple Choice

Which of the following is a CORRECT statement about the petty cash fund?

• A)To set up the petty cash fund,a check is issued to the chief financial officer.
• B)The custodian of the fund has sole responsibility for accounting for the fund.
• C)The cash in the fund must always equal the opening balance of the fund.
• D)The petty cash fund must be maintained at a bank.

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Definitions:

Scarce Resources

Resources that are limited in availability and cannot meet all demands of production or consumption at the same time.

Shadow Price

In economic theory, the value of an additional unit of a constrained resource, or the opportunity cost of not having that additional resource available.

Assembly Time

The total time required to put together various components of a product into its final form.

Overtime

Additional time worked by an employee beyond the normal or legally defined working hours, often eligible for higher pay rates.