A company would use a change fund if:
A)there are cash transactions daily.
B)they want to pay the postage expense without writing a check.
C)the owner wants to make personal withdrawals easily.
D)None of these are correct.

Question

Quizplus · Accepted Answer

A change fund is typically used for cash transactions, such as giving customers change, and is commonly found in businesses like retail stores or restaurants. It allows the company to have a designated amount of cash on hand for these transactions without having to constantly withdraw money from their bank account. Option B is incorrect because paying a postage expense can easily be done with a check or credit card, and option C is incorrect because a change fund is not intended for personal withdrawals by the owner.

A Company Would Use a Change Fund If