When a Petty Cash Fund Is in Use

question 8

Multiple Choice

When a petty cash fund is in use:

• A) Cash is debited when funds are replenished.
• B) Expenses are not recorded.
• C) Petty Cash is credited when funds are replenished.
• D) Expenses paid with petty cash are recorded when the fund is replenished.
• E) Petty Cash is debited when funds are replenished.

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Definitions:

Journal

A detailed record where financial transactions are entered initially, in chronological order, before being posted to accounts.

Indented

A term not typically used in a financial or accounting context; it often refers to a formatting style where text is moved to the right from the margin of a document.

Withdrawals

Withdrawals refer to the amounts of money or other assets taken from a business by its owner(s) for personal use.

Wage Expense

Wage expense is the total amount of wages and salaries paid to employees by a company during a specific period of time.