A petty cash fund is generally established in order to
A) pay for all merchandise purchased on account.
B) pay employees' wages.
C) make loans internally to employees.
D) pay relatively small expenditures.

Question

Quizplus · Accepted Answer

Petty cash funds are established to pay for relatively small expenses such as office supplies, postage, and other minor expenses. It is not typically used for purchasing merchandise on account, paying employee wages, or making loans internally to employees.

A Petty Cash Fund Is Generally Established in Order to