Indicate Whether Each of the Following Items Regarding Petty Cash

question 80

Short Answer

Indicate whether each of the following items regarding petty cash is true or false.
_____ a) The establishment of a petty cash fund is an asset exchange transaction.
_____ b) The replenishment of a petty cash fund is an asset source transaction.
_____ c) At any time, the total of the petty cash vouchers plus the remaining coins and currency should equal the balance of the Petty Cash ledger account.
_____ d) If a shortage occurs, a credit is entered to the Cash Short and Over account.
_____ e) There is no journal entry made in the accounting records at the time when petty cash funds are disbursed.

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Definitions:

Merit Pay System

A compensation strategy that rewards employees based on their performance and achievements rather than their role or seniority.

Performance Measures

Quantitative or qualitative metrics used to evaluate the efficiency and effectiveness of an individual, group, or organization's operations against defined objectives.

Agreed Upon

A decision or plan that has been accepted and consented to by all parties involved.

Gain-sharing

A performance-based compensation strategy where employees receive bonuses based on the improvement of company metrics.