The Initial Entry to Establish a Petty Cash Fund Involves

question 143

True/False

The initial entry to establish a petty cash fund involves a debit to cash and a credit to petty cash.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds.

Current Liabilities

Obligations or debts that a company must pay within one year or within its normal operating cycle if longer.

Interest-Bearing Notes

Debt securities that pay interest to the holder at a fixed or variable rate until maturity.

Operating Cycle

The duration between the purchase of inventory and the collection of accounts receivable generated from sales.