Final answer:
The assertion that petty cash should only be replenished at the end of an accounting period is false. Petty cash is replenished as needed throughout the period for efficient cash management and timely record-keeping.
Step-by-step explanation:
The statement that the petty cash fund should only be replenished at the end of each accounting period is false. The petty cash fund is typically replenished as needed, when it becomes low, not just at the end of an accounting period. This is because petty cash transactions occur on a regular basis to cover minor expenses, and it is important to account for these transactions promptly to ensure that the petty cash fund remains balanced and to maintain accurate records of cash flows.
Similar to how balancing your checkbook regularly can prevent financial discrepancies and help manage funds more efficiently, replenishing the petty cash fund regularly ensures that the correct amount of cash is always available and that transactions are documented in a timely manner. This regular maintenance of the petty cash fund is essential for cash management and can avoid issues related to cash shortages or overages that might occur if the fund were only replenished at the end of each accounting period.