A Petty Cash Fund Was Established with a $250 Balance

question 40

Multiple Choice

A petty cash fund was established with a $250 balance.It currently has cash of $31 and petty cash tickets totaling $219.Which of the following would be included in the entry to replenish the fund?

• A) A credit to Petty cash for $219
• B) A debit to Petty cash for $31
• C) A credit to Cash in bank for $31
• D) A credit to Cash in bank for $219

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Definitions:

Cash

Liquid funds available for transaction or investment purposes.

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation, which do not confer voting rights or pay dividends.

Purchase Price

The amount of money paid to buy a good, service, or asset. It encompasses all forms of considerations including cash, assets, assumed liabilities, and other financial terms involved in a transaction.

Common Stock

An equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.