(a) Introduction: A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level . If company A should implement controls over petty cash fund.

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Answer 1

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

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Which of the following does not show good cash management regarding the controls over cash disbursements? Use a petty cash fund to make only small expenditures. Make all major disbursements by check. Combine the handling of receiving bills, writing checks, and signing checks to one person. Prepare bank reconciliations in a timely manner. All the above shows good cash management controls over cash disbursements. A. В. C. D. E.

The following statements relate to cash. Which statement is false? Legally restricted compensating balances required by a bank should always be excluded from "cash and cash equivalent". Classification of a restricted cash balance as current or noncurrent should be not parallel to the classification of the related obligation for which the cash was restricted. The term cash can refer to demand credit instruments such as money order and bank drafts. The purpose of establishing a petty cash fund is to keep enough cash for small recurring operating expenses for a period of time.

What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash?

Answer 2

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

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Answer 3

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

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Answer 5

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

Answer 6

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

Answer 7

Chapter 5, Problem 16CDQ

To determine

(a)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

If company A should implement controls over petty cash fund.

Answer 8

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

Answer 9

To determine

(b)

Introduction:

A petty cash fund is a special fund operated by a petty cash custodian to pay relatively small amounts of cash expenses in business during a specific time-period which may be weekly or monthly. All expenses are paid from this fund and it is replenished when the cash in the fund reaches a minimum level.

The measures that can be used to control petty cash fund.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 5 - Prob. 1SEQ Ch. 5 - Prob. 2SEQ Ch. 5 - Prob. 3SEQ Ch. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQ Ch. 5 - Prob. 1CDQ Ch. 5 - Prob. 2CDQ Ch. 5 - Prob. 3CDQ Ch. 5 - Prob. 4CDQ Ch. 5 - Prob. 5CDQ

Solution Summary: The author explains how a petty cash fund is operated to pay relatively small amounts of cash expenses in business. The controls include responsibility to one person, maintaining records, providing support documents, and periodic review of funds.

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