multiple select question select all that apply determine which of the statements below are accurate…

multiple select question select all that apply determine which of the statements below are accurate regarding how a petty cash fund is created and used in a business. (check all that apply.) the petty cashier is responsible for keeping the cash in the fund safe. any employee may disburse cash from the fund as long as they bring back a receipt for their purchase. the sum of all petty cash receipts plus the remaining cash should equal the total of the fund amount at any given time. a check is drawn by the company cashier to establish the petty cash fund. the petty cashier is responsible for making payments from the petty cash fund. when the fund is replenished, the petty cash fund account is debited.

multiple select question select all that apply determine which of the statements below are accurate regarding how a petty cash fund is created and used in a business. (check all that apply.) the petty cashier is responsible for keeping the cash in the fund safe. any employee may disburse cash from the fund as long as they bring back a receipt for their purchase. the sum of all petty cash receipts plus the remaining cash should equal the total of the fund amount at any given time. a check is drawn by the company cashier to establish the petty cash fund. the petty cashier is responsible for making payments from the petty cash fund. when the fund is replenished, the petty cash fund account is debited.

Answer

Brief Explanations:

  • The petty cashier has custody - related responsibilities like keeping cash safe and making payments, so the first and fifth statements are correct.
  • Only authorized personnel (usually petty cashier) can disburse, not any employee, so the second statement is incorrect.
  • The sum of receipts and remaining cash should equal the fund amount to ensure proper accounting, so the third statement is correct.
  • A check is drawn to establish the fund, so the fourth statement is correct.
  • When replenished, the petty cash fund account is not debited (cash is debited and an expense - related account is credited), so the sixth statement is incorrect.

Answer:

  • The petty cashier is responsible for keeping the cash in the fund safe.
  • The sum of all petty cash receipts plus the remaining cash should equal the total of the fund amount at any given time.
  • A check is drawn by the company cashier to establish the petty cash fund.
  • The petty cashier is responsible for making payments from the petty cash fund.