Question 1(Multiple Choice Worth 5 points)
(03.04 LC)
An internal control that documents petty cash requests is
reconciling the petty cash account
requiring a petty cash slip
requiring receipts
separating duties
Question 2(Multiple Choice Worth 5 points)
(03.04 MC)
When reconciling petty cash, you determine that the total withdrawals according the petty cash slips is $169.00. Since the fund started with $200.00, there should be $31.00 remaining in the petty cash box. When the cash is counted, there is only $28.00. How is the discrepancy entered in the journal?
Since there is a $3 overage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is credited $3, and the Cash account is credited $172.00 to replenish the fund.
Since there is a $3 overage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is debited $3, and the Cash account is credited $169.00 to replenish the fund.
Since there is a $3 shortage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is credited $3, and the Cash account is credited $172.00 to replenish the fund.
Since there is a $3 shortage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is debited $3, and the Cash account is credited $172.00 to replenish the fund.
Question 3(Multiple Choice Worth 5 points)
(03.04 LC)
When cash is withdrawn from a petty cash fund for a purchase or payment, it is called
a cash withdrawal
a petty cash disbursement
establishing a petty cash fund
replenishing a petty cash fund
Question 4(Multiple Choice Worth 5 points)
(03.04 MC)
For which transaction would it be most appropriate to use a petty cash fund?
Electric bill
Mortgage payment
Postage
Taxes
Question 5(Multiple Choice Worth 5 points)
(03.04 LC)
A form filled out to document a payment made from petty cash is called a
petty cash fund
petty cash journal
petty cash log
petty cash slip
