Indicate Whether Each of the Following Items Regarding Petty Cash

question 95

Short Answer

Indicate whether each of the following items regarding petty cash is true or false.
_____ a)The establishment of a petty cash fund is an asset use transaction.
_____ b)The replenishment of a petty cash fund is an asset source transaction.
_____ c)At any time,the total of the petty cash vouchers plus the remaining coins and currency should equal the balance of the Petty Cash ledger account.
_____ d)If a shortage occurs,a credit is entered to the Cash Short and Over account.
_____ e)There is no journal entry made in the accounting records at the time when petty cash funds are disbursed.

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Definitions:

Conformity

The process of aligning one's beliefs, behaviors, and attitudes with the norms of a group or the expectations of society.

Evolutionary Perspective

A theoretical approach that studies human behavior, mind, and society through the lens of evolution and natural selection.

Bias

A tendency to have a partial perspective or preference towards something, often leading to unfair judgement or discrimination.

Bystander Effect

A social psychological phenomenon where individuals are less likely to help a victim when other people are present, often due to diffused responsibility.