The Entry at the End of the Month to Reimburse

question 32

Multiple Choice

The entry at the end of the month to reimburse the petty cash for the amount spent is which of the following?

• A) Debit petty cash asset; credit bank
• B) Debit bank; credit petty cash asset
• C) Debit petty cash asset; credit petty cash expenses
• D) Debit petty cash expenses; credit bank

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Definitions:

Accounting Net Income

The profit of a company after all expenses and taxes have been deducted from revenues.

Net Present Value Method

A financial analysis tool used to evaluate the profitability of an investment, taking into account the time value of money.

Discount Rate

This interest rate is used in the framework of discounted cash flow analysis to determine the present worth of cash flows anticipated in times ahead.