The Petty Cash Fund Had an Initial Imprest Balance of $200

question 73

Multiple Choice

The petty cash fund had an initial imprest balance of $200. It currently has $17 in cash, $3 in miscellaneous cash receipts and an additional $180 in specific cash receipts. The debit to Cash Short & Over would be:

• A)$0.
• B)$17.
• C)$180.
• D)$183.

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Definitions:

Allowances

Reductions or adjustments to the carrying amount of assets or the amount of a liability, often related to accounts receivable or inventory to reflect possible uncollectibility or diminution in value.

Deposits in Transit

Deposits in Transit are amounts that have been received and recorded by a business but not yet reflected in its bank statement.

Bank Statement

A summary of financial transactions that have occurred over a period of time in an account held by a person or business with a financial institution.

Cash Account

A financial account that tracks the flow of cash transactions, including receipts and payments, within a company.