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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Concept explainers
Question
Answer these question along with give reason for answer

Transcribed Image Text:The account used to pay for very small business purchases
is called
a) Accounts Receivable
b) Petty Cash
c) Accounts Payable
d) Retained Earnings
Question #2
As an employee, a common way to get funds from Petty
Cash is to:
a) Pay for an authorized item with your own cash and bring
a receipt for reimbursement
b) Request cash from the accounting department
c) Go in the supervisor's drawer and take it
d) Make an unauthorized purchase
Question #3
2. To establish the Petty Cash account, the account that
will be debited is
a) Cash
b) Office Supplies
c) Office Supplies Expense
d) Petty Cash
Expert Solution
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Explanation -
Petty Cash -
The company maintains a petty cash account to pay small expenses. This account is maintained separately by the company and recorded as a separate line item.
Step by stepSolved in 2 steps
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