Which One of the Following Procedures Is incorrect for Setting

question 46

Multiple Choice

Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?

• A) A check is prepared for a fixed amount; when the check is cashed, the money is entrusted to a petty cash custodian.
• B) An entry is recorded to establish the fund and obtain the cash.
• C) When appropriate documentation is presented, cash payments are made from the fund; the petty cash custodian retains the documentation.
• D) When the petty cash fund is replenished, an entry is recorded to recognize an increase in the petty cash account.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Production Functions

Mathematical relationships expressing the output of a firm, an industry, or an entire economy as a function of inputs.

Industry Supply Curve

A graph showing the relationship between the price of a good and the total output of the industry that produces it.

Equilibrium Price

The price at which the supply of a good matches its demand in the market, leading to a stable situation where everything supplied is sold.