Petty Cash Is Accounted for by Maintaining a Constant Balance

question 36

Multiple Choice

Petty cash is accounted for by maintaining a constant balance in the petty cash account,supported by the fund (cash plus payment slips) totalling the same amount.What is this system called?

• A)A balanced system
• B)A control system
• C)A voucher system
• D)An imprest system

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Definitions:

Journal Entry

A record of a transaction in a business's accounts, noting the accounts affected and the amounts.

Depreciation

The process of methodically allocating the expense of a physical asset over its functional life.

Sales Price

The amount at which goods or services are sold to customers, sometimes before discounts, taxes, or additional charges.

Equipment Cost

The total expense incurred in purchasing and preparing equipment for its intended use, including acquisition, delivery, and setup costs.