Which of the following is a CORRECT statement about the petty cash fund?
A)To set up the petty cash fund,a check is issued to the chief financial officer.
B)The custodian of the fund has sole responsibility for accounting for the fund.
C)The cash in the fund must always equal the opening balance of the fund.
D)The petty cash fund must be maintained at a bank.

Question

Quizplus · Accepted Answer

The custodian of the petty cash fund is responsible for accounting for the fund and ensuring that all disbursements are properly documented and accounted for. A check is issued to set up the fund, but it is not issued to the CFO. The cash in the fund may not always equal the opening balance if there have been disbursements or additions made. The petty cash fund does not need to be maintained at a bank.

Which of the Following Is a CORRECT Statement About the Petty