Which of the Following Is the Most Appropriate Action When

question 9

Multiple Choice

Which of the following is the most appropriate action when balancing a petty cash account?

• A)Add $10 to the account weekly. 
• B)Add $25 to the account weekly. 
• C)Add $100 at the beginning of each month. 
• D)Add an amount equal to that spent.

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Definitions:

Carrying Values

The amount at which an asset is recognized on the balance sheet after deducting any accumulated depreciation and impairment charges.

Deferred Tax Account

An account on a company’s balance sheet that is a provision for income taxes that have been accrued but are not yet due.

Unrealized Profits

Profits that have been earned but not yet realized through a transaction, such as an increase in value of an investment that has not been sold yet.

Inventory

the totality of goods and materials held by a company for the purpose of resale, manufacturing, or repair.