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:

Standardized Form Contracts

Contracts that are preprinted and contain set terms and conditions for all parties, typically not negotiable.

Pre-Contract Statements

Statements made by parties involved before a contract is finalized, which may influence the agreement or understanding of the contract.

Consideration

In contract law, the benefit or value that each party agrees to exchange as part of a contractual agreement, which is a requirement for a valid contract.

Assignee

A person to whom an assignment is made.