If a Petty Cash Fund Is Established in the Amount

question 72

Multiple Choice

If a petty cash fund is established in the amount of $250, and contains $153 in cash and $94 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts

• A)Petty Cash, $94.
• B)Petty Cash, $97.
• C)Cash, $94; Cash Over and Short, $3.
• D)Cash, $97.

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Definitions:

New Business Venture

A newly established business endeavour, typically characterized by innovation, entrepreneurship, and risk.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment in the partnership and does not participate in daily business operations.

Dissolve

The process of formally closing or ending a legal entity, such as a corporation or partnership, and distributing its assets.

Partnership

A legal form of business operation between two or more individuals who share management and profits or losses.