Entries Are Made to the Petty Cash Account When

question 122

Multiple Choice

Entries are made to the Petty Cash account when

• A) establishing the fund.
• B) making payments out of the fund.
• C) recording shortages in the fund.
• D) replenishing the fund.

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Definitions:

Carrying Costs

Expenses incurred by holding inventory over a period, including storage costs, insurance, and opportunity costs.

Credit Policy Effects

The impact of a company's credit policy on its operations, including effects on sales volume, customer relationships, and cash flow.

Cost Factor

A multiplier or rate that helps in estimating the cost of a project, task, or operation based on certain parameters or variables.