In Establishing a Petty Cash Fund, a Check Is Written

question 33

True/False

In establishing a petty cash fund, a check is written for the amount of the fund and is recorded as a debit to Accounts Payable and a credit to Petty Cash.

---

Definitions:

Dividends

A portion of a company’s earnings distributed to its shareholders as a reward for their investment.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles and standards in Canada designed for private companies.

IFRS

International Financial Reporting Standards, which are global standards for how particular types of transactions and other events should be reported in financial statements.

Share Capital

The total amount of capital raised by a company through the issuance of shares to shareholders.