A Petty Cash Fund Was Established with a $400 Balance

question 142

Multiple Choice

A petty cash fund was established with a $400 balance. It currently has cash of $10 and petty cash tickets as shown below. The journal entry to replenish the account would be which of the following:

• A)Debit various expenses $390, credit Cash $390
• B)Debit various expenses $390, credit Petty cash fund $390
• C)Debit Cash $10, credit various expenses $10
• D)Credit Petty cash fund $390, debit Cash $390

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Definitions:

Temporary Differences

Differences between the tax base of an asset or liability and its carrying amount in the financial statements, which will result in taxable or deductible amounts in the future.

Taxable Income

The amount of income used to calculate how much the entity owes in taxes to the federal, state, and/or local government.

Pretax Financial Income

The income of a company before taxes are deducted, often used in financial reporting and analysis.

Interperiod Tax Allocation

A method used in accounting to allocate income taxes over different periods to match taxes with the revenues they affect.