A Petty Cash Fund Was Established with a $400 Balance

question 10

Multiple Choice

A petty cash fund was established with a $400 balance. It currently has cash of $15 and petty cash tickets as shown below. The journal entry to replenish the account would be which of the following:

• A)Debit to Cash short & over for $5
• B)Credit Cash short & over for $5
• C)Debit Petty cash fund $5
• D)Credit Petty cash fund $5

Recognize the role of international trade in determining exchange rates.

Understand the principles of exchange rates and their classifications (flexible, fixed, managed floating).

Analyze the impact of exchange rate systems on international trade and financial transactions.

Identify the tools and policies used to maintain fixed exchange rates.

---

Definitions:

Actual Cash Value

The amount equal to the replacement cost of damaged or stolen property minus depreciation.

Liability

The condition of being legally accountable for certain actions or responsibilities, particularly regarding financial debts or legal duties.

Replacement Value

The cost to replace an asset or property with a new one of similar kind and quality at current market prices.

Stated Value

The value of an asset as declared by its owner, often for insurance purposes, which may or may not reflect its actual market value.