The Last Custodian of the Petty Cash Fund Was Hospitalized $$\begin{array} { l r } \text { Office supplies } & \$ 295 \\\text { Advertising } & 120 \\\text { Transportation by taxi } & 75\end{array}$$

question 70

Essay

The last custodian of the petty cash fund was hospitalized and you have been asked to take stock of the fund and replenish it. When you receive the fund, it has $299 in cash and receipts as follows:​ $$\begin{array} { l r } \text { Office supplies } & \$ 295 \\\text { Advertising } & 120 \\\text { Transportation by taxi } & 75\end{array}$$ The petty cash fund was established to have $800 in it.Based on what you have found, what journal entry should be recorded to replenish the fund?

Understand the principles of liquidity and how it impacts a firm's financial flexibility.

Comprehend the short-term financial obligations of a firm as indicated by current liabilities.

Familiarity with GAAP and IFRS accounting principles and their implications for financial reporting.

Understand non-cash items in financial statements and their impact on a company’s financial performance.

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Definitions:

Reliability Coefficient

The reliability coefficient is a statistical measure that indicates the consistency or stability of scores obtained from a test or measurement tool over time.

Unsystematic Error

The collection of factors that contribute to the variation in scores noted across administrations of a test or instrument. Also referred to as random error.

Random Measurement Error

Variability in measurement results that arises from unpredictable fluctuations during the measurement process.

Internal Consistency

A measure of the reliability of a psychological test or survey, based on the extent to which all parts of the test contribute equally to what is being measured.