The Journal Entry to Open a New Petty Cash Fund

question 183

True/False

The journal entry to open a new petty cash fund includes a debit to the Petty Cash account and a credit to the Cash account.

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Definitions:

Machinery

Equipment or devices designed for a specific purpose, often used in manufacturing or industrial processes.

Investing Activities

Transactions and events that relate to the investment of the company’s cash, including acquisitions and disposals of long-term assets and other investments not included in cash equivalents.

Cash Flows

The net amount of cash being transferred into and out of a business.

Operating Activities

The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.