Budgets Are a Key Component of Planning

question 11

True/False

Budgets are a key component of planning.

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Definitions:

Petty Cash

A small amount of cash kept on hand in a business for minor, routine expenses, managed through a system involving vouchers.

Petty Cash Receipt

A petty cash receipt is a document used to record small cash payments for minor expenses, part of a system to manage incidental or minor office costs.

Petty Cash Account

A small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.

Compensating Balance

A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts.