select all that apply review the following statements and select the ones which accurately describe a petty…

select all that apply review the following statements and select the ones which accurately describe a petty cash fund. select all answers which apply. it is an account used to record small sales amounts. it is established to pay for small payments like low - cost supplies and shipping fees, etc. it is an asset reported on the balance sheet. it is an expense reported on the income statement.

select all that apply review the following statements and select the ones which accurately describe a petty cash fund. select all answers which apply. it is an account used to record small sales amounts. it is established to pay for small payments like low - cost supplies and shipping fees, etc. it is an asset reported on the balance sheet. it is an expense reported on the income statement.

Answer

Brief Explanations:

  • A petty - cash fund is not for recording small sales amounts. It is for making small payments.
  • It is set up to pay for small - value items like low - cost supplies and shipping fees.
  • It is an asset as it represents cash on hand for small transactions and is reported on the balance sheet.
  • It is not an expense on the income statement; the amounts used from it for specific items become expenses when the items are used or the services are received.

Answer:

  • It is established to pay for small payments like low - cost supplies and shipping fees, etc.
  • It is an asset reported on the balance sheet.