Spencer Co

question 6

Multiple Choice

Spencer Co.decides to establish a petty cash fund with a beginning balance of $200.The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system.The journal entry to record establishing the account is:

• A)Debit Cash $200 and credit Petty Cash $200.
• B)Debit Cash $200 and credit Cash Over and Short $200.
• C)Debit Petty Cash $200 and credit Cash $200.
• D)Debit Petty Cash $200; credit Cash $175; and credit Cash Over and Short $25.
• E)Debit Cash $200 and credit Petty Cash Over and Short $200.

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Definitions:

Aorta

The largest artery in the body, which carries oxygenated blood from the heart to the rest of the body.

Tricuspid Valve

A valve in the heart that lies between the right atrium and the right ventricle, preventing backflow of blood from the ventricle to the atrium.

Trabeculae Carneae

Muscular ridges on the internal surface of the heart's ventricles.

Aortic Semilunar Valve

A valve in the heart located between the left ventricle and the aorta that prevents blood from flowing back into the heart after it has been ejected.