Indicate Whether Each of the Following Items Regarding Petty Cash

question 102

True/False

Indicate whether each of the following items regarding petty cash is true or false.a)________ The establishment of a petty cash fund is an asset use transaction.b)________ The replenishment of a petty cash fund is an asset source transaction.c)________ At any time, the total of the petty cash vouchers plus the remaining coins and currency should equal the balance of the Petty Cash ledger account.d)________ If a cash shortage occurs, revenue is recognized.e)________ When petty cash is disbursed, there is no effect on the financial statements.

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Definitions:

Member-Managed

Describes a management structure in a limited liability company (LLC) where all members (owners) actively participate in the day-to-day operations and decision-making process.

Manager-Managed

A structure typically used in limited liability companies (LLCs) where the management is officially assigned to one or more managers rather than being directed by all members.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Test-Market

A process used by companies to evaluate the viability of a new product or service in a limited geographic area before a wide-scale launch.