1. Petty cash fund is b.

Petty cash is debited

a. Separately classified as current asset c. Petty cash is credited
b. Money kept on hand for making minor d. Expense accounts are debited
disbursements of coin and currency rather than by
Question #8: A Cash Over and Short account
writing checks
c. Set aside for the payment of payroll a. Is not generally accepted
d. Restricted cash b. Is debited when the petty cash fund proves out
Question #2: The petty cash fund account under the over
imprest fund system is debited c. Is debited when the petty cash fund proves out
short
a. Only when the fund is created
d. Is a contra account to cash
b. When the fund is created and every time it is
replenished `Question #9: Which of the following statements in
c. When the fund is created and when the size of the relation to accounting for petty cash fund is false?
fund is increased
d. When the fund is created and when the size of the a. Each disbursement from petty cash should be
fund is decreased supported by a petty cash voucher
b. The creation of a petty cash fund requires a journal
Question #3: The internal control feature that is specific to entry to reflect the transfer of fund out of the
petty cash is general cash account
c. At any time, the sum of the cash in the petty cash
a. Separation of duties
fund and the total of petty cash vouchers should
b. Assignment of responsibilities
equal the amount for which the imprest petty cash
c. Proper authorization
fund was established
d. Imprest system
d. With the establishment of an imprest petty cash
Question #4: What is the major purpose of an imprest fund, one person is given the authority and
petty cash fund? responsibility for issuing

a. To effectively plan cash inflows and outflows Question #10: Which of the following statements in
b. To ease the payment of cash to vendors relation to the cash short or over is true?
c. To determine the honesty of the petty cashier
a. It would be impossible to have cash shortage or
d. To effectively control cash disbursements
overage if employees were paid in cash rather
Question #5: What happens when a petty cash is in use? than by check
b. The entry to account for daily cash sales for which
a. Expenses paid with petty cash are recorded when
a small amount of cash shortage existed would
the fund is replenished
include a debit to cash short or over account
b. Most small amounts are paid from cash receipts
c. If the cash short or over account has a debit
before they are deposited
balance at the end of the period, it must be
c. Petty cash is debited when the fund is replenished
debited to an expense account
d. Petty cash is credited when the fund is replenished
d. A credit balance in a cash short or over account
Question #6: When a petty cash fund is used, which of the should be considered a liability because the short
following is true? changed customer

a. The balance of the petty cash fund should be

reported in the statement of financial position as a
long-term investment.
b. The petty cashier's summary of petty cash
payments serves as a journal entry that is posted
to the appropriate general ledger account.
c. The reimbursement of the petty cash fund should
be credited to the cash account.
d. Entries that include a credit to the cash account
should be recorded at the time the payments from
the petty cash fund are mad

Question #7: In reimbursing the petty cash fund, which of

the following is true?

a. Cash is debited