Which of the Following Is a Correct Statement About the Petty

question 22

Multiple Choice

Which of the following is a correct statement about the petty cash fund?

• A) To set up the petty cash fund, a check is issued to the chief financial officer.
• B) The custodian of the fund has sole responsibility for accounting for the fund.
• C) The sum of the cash in the fund must always equal the opening balance of the fund.
• D) The petty cash fund must be maintained at a bank.

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Definitions:

Fiscal Policy

Government strategies for adjusting its spending levels and tax rates to influence a nation's economy.

Budget Deficits

A financial situation where a government's expenditures surpass its revenues within a specific period.

Government Expenditures

The total amount of money spent by the government in a particular period, including spending on goods, services, and public projects.

Hoover Administration

The U.S. presidential administration of Herbert Hoover, serving from 1929 to 1933, noted for its handling of the early stages of the Great Depression.