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:

Generates Revenue

The process of creating income for a company through activities such as sales of goods, provision of services, or other business operations.

Investing Decisions

Choices made by individuals or companies regarding where to allocate resources, often considering the potential for profits or losses, to achieve financial growth.

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated based on its return on investment.

Profit Center

A separate business unit or department within an organization that is responsible for generating its own revenue and profits.