Question

Determine which of the statements below are accurate regarding how a petty cash fund is created and used in a business. (Check all that apply.)

A. When the fund is replenished, the Petty Cash fund account is debited.
B. Any employee may disburse cash from the fund as long as they bring back a receipt for their purchase.
C. The petty cashier is responsible for making payments from the petty cash fund.
D. The petty cashier is responsible for keeping the cash in the fund safe.
E. The sum of all petty cash receipts plus the remaining cash should equal the total of the fund amount at any given time
F. A check is drawn by the company cashier to establish the petty cash fund

Answer 1

Options C,D,E and F are correct

Step-by-step explanation:

Petty cash fund is used to provide sufficient cash to business units to spend on minor expenditures such as postage, taxi fares, etc.

The following statements are accurate regarding how a petty cash fund is created and used in a business:

C. The petty cashier is responsible for making payments from the petty cash fund.

D. The petty cashier is responsible for keeping the cash in the fund safe.

E. The sum of all petty cash receipts plus the remaining cash should equal the total of the fund amount at any given time

F. A check is drawn by the company cashier to establish the petty cash fund