A Petty Cash Fund Was Established with a $400 Balance

question 88

Multiple Choice

A petty cash fund was established with a $400 balance.It currently has cash of $41 and petty cash tickets totaling $359.Which of the following would be included in the entry to replenish the fund?

• A) a credit to Petty Cash for $359
• B) a debit to Petty Cash for $41
• C) a credit to Cash for $41
• D) a credit to Cash for $359

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Definitions:

Historical Cost

The original monetary value of an asset or expense as recorded at the time of purchase or acquisition.

Fair Value

An estimate of the price at which an asset would trade in a competitive auction setting.

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, real estate, or investments in other companies.

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, recorded at fair value and subject to changes in the income statement upon realization.