The Journal Entry to Replenish a Petty Cash Fund Includes

question 77

True/False

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

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Definitions:

Carrying Amount

Carrying amount is the value at which an asset is recognized in the balance sheet after deducting accumulated depreciation and impairment losses.

Revaluation Model

An accounting method that allows assets to be carried at a revalued amount, reflecting their fair value at the date of revaluation.

Impairment Loss

The amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, leading to a reduction in value on the balance sheet.

Revaluation Decrement

The process of decreasing the recorded value of an asset to reflect its current market value, often recognized in financial reporting.