A Petty Cash Fund Was Established with a $400 Balance

question 3

Multiple Choice

A petty cash fund was established with a $400 balance.It currently has cash of $43 and petty cash tickets totaling $357.Which of the following would be included in the entry to replenish the fund?

• A) a credit to Petty Cash for $357
• B) a debit to Petty Cash for $43
• C) a credit to Cash for $43
• D) a debit to various expenses for $357

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Definitions:

Cash Equivalents

Investments that are liquid and short-term, easily turned into a specific amount of cash, with their initial durations being three months or shorter.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Long-Term Investments

Assets that a company intends to hold for more than a year, such as stocks, bonds, real estate, and investment in subsidiary companies, which are not easily converted into cash.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's profits.