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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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.
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