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:

Wine Barrel

A cylindrical container typically made of oak wood used for the aging, fermentation, or storage of wine, imparting flavors and aiding in the wine's development.

Upstream Cost

Costs incurred before the production process begins, typically involving raw material acquisition and preparation.

Wine Barrels

Large containers traditionally made of oak, used for aging wine and imparting flavors during the winemaking process.

Traditional Cost Management

A cost accounting approach that typically allocates overhead costs based on volume-driven measures, such as machine hours or labor hours.