Morris Company Established a Petty Cash Fund with a $600

question 140

Multiple Choice

Morris Company established a petty cash fund with a $600 balance.Which of the following statements is incorrect?

• A)A journal entry is needed to debit the Cash account and credit the Petty Cash account for $600.
• B)There is no net effect on current assets.
• C)The sum of the cash plus the total of the petty cash tickets should equal $600 at all times.
• D)The petty cash custodian cashes a check for $600 and places the currency in the petty cash fund box.

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