When a Petty Cash Fund Is Established,the Entry Contains a Credit

question 25

True/False

When a petty cash fund is established,the entry contains a credit to Cash.

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Definitions:

Sole Proprietor

A business owned and operated by a single individual, without a legal distinction between the owner and the business.

Separate Legal Entity

A business entity that is legally distinct from its owners, meaning it can own property, incur debts, and be sued in its own name.

Ratification

The action of formally confirming or approving an agreement, treaty, or contract, making it officially valid.

Authority

The legal right or power to make decisions, enforce rules, or command obedience.