A Petty Cash Fund Was Established with a $250 Balance

question 142

Multiple Choice

A petty cash fund was established with a $250 balance.It currently has cash of $40 and petty cash tickets as follows: Office expense $150 and Entertainment Expense $75.Which of the following would be included in the journal entry to replenish the Petty Cash fund?

• A)debit to Cash Short & Over for $25
• B)credit to Cash Short & Over for $15
• C)credit to Cash Short & Over for $25
• D)debit to Cash Short & Over for $15

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Definitions:

Cost Drivers

Factors that cause a change in the cost of an activity or production, such as labor hours or machine usage.

Facility-level Costs

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a facility.

Overhead Cost

Indirect expenses related to the day-to-day running of a business, such as rent, utilities, and administrative costs.

Batch Level Activities

Activities and costs incurred for a group of products rather than individual units or processes.