If the Petty Cash Fund Is Not Replenished on the Balance

question 164

Multiple Choice

If the petty cash fund is not replenished on the balance sheet date:

• A)cash and income will be overstated.
• B)income will be understated.
• C)cash will be understated.
• D)liabilities will be understated.

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Definitions:

Sick Leave

A paid or unpaid absence from work that an employee is allowed to take because of illness.

Vacation Allotments

The designated amounts of vacation time given to employees by an organization as part of their benefits package.

S.T.E.P. Approach

A strategic planning method focusing on scanning, targeting, evaluating, and proceeding to address organizational issues or opportunities.

Open-Book Management

A management approach where financial information is shared with employees to involve them in understanding how their actions affect the company's performance.