Final answer:
Cash set aside for small business expenses when checks are not feasible is called petty cash. It's used for small expenses and is managed by a designated custodian who tracks the spending.
Step-by-step explanation:
The cash that is set aside to purchase small items for the business when a business check is not available is called petty cash. Petty cash is used for small, incidental expenses where writing a check is impractical. It typically involves a small amount of money kept on hand and is managed through a petty cash fund. A designated petty cash custodian is responsible for distributing the funds and keeping a record of the expenditures. When the fund runs low, the custodian will request a check to reimburse the fund for the expenses, providing the receipts as documentation.