Question

From the following given options identify any two steps essential in establishing a petty cash fund. 1)Appointing the accountant to take care of petty cash transactions ii)Appointing the treasurer 1)Appointing a petty cash custodian who will be responsible for the fund iv)Determining the size of the fund. 2.1) & ii) b. iii) & iv) ci & iv) d. ii) & it)

Answer 1

Essential steps for setting up a petty cash fund include appointing a petty cash custodian and determining the fund's size.

Step-by-step explanation:

Two essential steps in establishing a petty cash fund are appointing a petty cash custodian and determining the size of the fund. The petty cash custodian will be responsible for managing the fund and handling transactions. Determining the size of the fund is crucial to ensure it covers small, incidental expenses without the need for frequent replenishments.