If a Petty Cash Fund Is Established in the Amount

question 95

Multiple Choice

If a petty cash fund is established in the amount of $200, and contains $120 in cash and $85 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts

• A) Petty Cash, $85.
• B) Petty Cash, $80.
• C) Cash, $80; Cash Over and Short, $5.
• D) Cash, $80.

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Definitions:

Market Risk

The risk of losses in financial markets arising from movements in market prices.

Stocks

Financial securities representing partial ownership in a company, allowing investors to claim on the company's assets and earnings.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees. It's a contract between an individual and an insurance company.

Utility Function

A utility function is a mathematical representation of a consumer's preference ranking for different bundles of goods, indicating the total satisfaction or utility derived from consuming these goods.