Which of the following is not true? a. The Petty Cash account is debited when the fund is replenished. b. The imprest petty cash system in effect adheres to the rule of disbursement by check. c. Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year-end. d. All of these answer choices are not true.

Which of the following is not true? a. The Petty Cash account is debited when the fund is replenished. b. The imprest petty cash system in effect adheres to the rule of disbursement by check. c. Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year-end. d. All of these answer choices are not true.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 3QY: Which of the following does not explain the differences between the bank statement balance and the...

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After removing the Change Fund, a cash shortage exists if: a.the Petty Cash Fund is greater than the Change Fund. b.the Change Fund is greater than the Petty Cash Fund. c.the day's receipts are greater than the register reading. d.the day's receipts are less than the register reading.
Evaluate the following statements Statement 1: Under the punctuating system of petty cash accounting, there will be necessary adjustments at the end of the reporting period at all times. Statements 2: Under the imprest system of accounting for petty cash fund entries for expenses and others are made upon fund replenishment, therefore, entries are not necessary at any point within the reporting period. Statement 3: in the conduct of petty cash count, when you find a check with the petty cash custodian's name on it, it shall be included as a cash item together with the bills and other loose coins. A. TRUE, TRUE, FALSE B. FALSE, FALSE. TRUE C. TRUE, FALSE. FALSE D. FALSE. TRUE, FALSE E. TRUE. FALSE. TRUE
A check returned by the bank marked "NSF" means Select one: a. not satisfactorily filled-out. b. not sufficient funds. C. no service fee. d. no signature found.
Which of the following statements about reconciling items is true? A Debit memoranda should be subtracted from the book side of the bank reconciliation. B An NSF check returned to the bank should be added back to book cash. C If a company discovers errors in its general ledger Cash account, it should call the bank to have the errors corrected. D Adjustments to the bank side of the bank reconciliation should be booked as adjustments to the general ledger Cash account. Please advise, the answer D is correct?
57. Entity A maintains a petty cash fund. At any given point of time, the cash on hand and the petty cash vouchers must be equal to the ledger balance of the petty cash fund. If these are not equal, the difference is either shortage or overage. This system of handling petty cash fund is called Imprest system Fluctuating balance system Pretty cash system Imprest System
Under the imprest system, which amount the following situations when accounting entry is/are made? a. petty cashier accommodated and encashed the check of her friend from the purchasing department b. Christmas party contributions made the custodian's circle of friends where the custodians is in charge of its safekeeping c. it is a reporting period and the fund aren't replenished yet d. pending request of the petty cash custodian to increase the petty cash fund e. request and disbursement of fun by the company's messenger for the week
If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off?
The petty cash fund account under the imprest fund system is debited A. only when the fund is created B. when the fund is created and every time it is replenished C. when the fund is created and when the size of the fund is increased D. when the fund is created and when the fund is decreased.
Which statement is true? A. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank, all other things being equal. B. Outstanding checks will cause the cash balance per ledger to be greater than the balance reported by the bank, all other things being equal C. An error made by the bank by charging an amount to the depositor's account requires a correcting entry in the depositor's own records D. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
Payment by check is an important internal control over cash payments because a. the check must be signed by an authorized official. b. before signing the check, the official reviews the invoice supporting the payment. c. Both a and b d. None of the above
Which of the following statements is false with regard to a Cash Receipts Journal?: All receipts of cash from customers should be recorded in it Receipts of cash from the owner should not be recorded in it Receipt of cash from cash sales should be recorded in it. Receipt of cash from borrowing should be recorded in it.
11. Which of the following statements in relation to accounting for petty cash fund is false? Group of answer choices The creation of a petty cash fund requires a journal entry to reflect the transfer of fund out of the general cash account At any time, the sum of the cash in the petty cash fund and the total of petty cash vouchers should equal the amount for which the imprest petty cash fund was established Each disbursement from petty cash should be supported by a petty cash voucher With the establishment of an imprest petty cash fund, one person is given the authority and responsibility for issuing checks to cover minor disbursements