Final answer:
The statement that the petty cash fund is reimbursed when it is nearing zero and at the end of the accounting period is true.
Step-by-step explanation:
The statement that the petty cash fund is reimbursed when it is nearing zero and at the end of the accounting period is true.
The petty cash fund is a small amount of cash kept on hand for minor expenses in a business. When the fund is low and nearing zero, it needs to be replenished or reimbursed to ensure there is enough cash available for future expenses. Additionally, at the end of the accounting period, the remaining cash in the petty cash fund is counted, any receipts are recorded, and the fund is reimbursed to bring it back to its initial balance.
For example, if a company has a petty cash fund of $200 and has made $150 worth of petty cash payments, leaving only $50 remaining, the fund would be reimbursed by $150 to bring it back to its original balance of $200.