Which One of the Following Procedures Is incorrect for Setting

question 46

Multiple Choice

Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?

• A) A check is prepared for a fixed amount; when the check is cashed, the money is entrusted to a petty cash custodian.
• B) An entry is recorded to establish the fund and obtain the cash.
• C) When appropriate documentation is presented, cash payments are made from the fund; the petty cash custodian retains the documentation.
• D) When the petty cash fund is replenished, an entry is recorded to recognize an increase in the petty cash account.

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Definitions:

Job Enlargement

The process of increasing the variety and number of tasks that an employee performs to enhance job satisfaction and productivity.

Cafeteria Compensation

A type of employee benefit plan where employees can choose from a variety of pre-tax benefit options, similar to a cafeteria.

Personal Ownership

The sense of responsibility and commitment an individual feels toward a task, project, or role, fostering accountability and dedication.

Employee Participation

The involvement of employees in the decision-making process of an organization, which can enhance motivation and commitment.