Use the Following Information to Answer Questions $€250$ To Antoinette Mercier, the Custodian of the Petty Cash Fund

question 81

Multiple Choice

Use the following information to answer questions . On May 1, 2011, Vuitton Company established a petty cash fund by issuing a check for $€250$ to Antoinette Mercier, the custodian of the petty cash fund. On May 31, 2011 , Mercier submitted the following paid petty cash vouchers for replenishment of the petty cash fund when there is $€ 10$ cash in the fund: $$\begin{array} { l r } \text { Freight-in } & € 83 \\\text { Office Supplies Expense } & 65 \\\text { Entertainment of clients } & 62 \\\text { Postage Expense } & 25\end{array}$$
-The journal entry to establish the petty cash fund would include a

• A) debit to Cash for \(€ 250\).
• B) debit to Cash Over and Short for \(€ 250\).
• C) credit to cash for \(€ 250\).
• D) credit to Accounts Payable for \(€ 250\).

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Definitions:

Short-Term Deposits

Deposits made in a financial institution that have a short maturity period, usually less than one year, offering lower interest rates.

Student Loan Marketing Association

A former government-sponsored enterprise responsible for increasing the availability of student loans in the United States, also known as Sallie Mae.

Interest Rate Risk

Interest Rate Risk is the potential loss to investors, particularly in fixed-income securities, due to fluctuating interest rates.

T-Bond Futures

Futures contracts based on the expected value of U.S. Treasury bonds, used by investors to speculate on or hedge against future interest rate movements.