Which of the following would be true if the petty cash fund is NOT replenished on the balance sheet date?
A) Assets will be overstated.
B) Income will be overstated.
C) Both A and B would be true.
D) Neither A nor B would be true.

Question

Quizplus · Accepted Answer

The petty cash fund is an asset, so if it is not replenished on the balance sheet date, assets will be overstated. Additionally, if the petty cash fund is not replenished, expenses will be understated, which will lead to income being overstated.

Which of the Following Would Be True If the Petty