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 sum of 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, including maintaining the petty cash journal and reconciling the fund. Option A is incorrect because the check is issued to the petty cash fund, not the CFO. Option C is incorrect because the sum of the cash in the fund will decrease as petty cash disbursements are made. Option D is incorrect because the petty cash fund is typically maintained in a small box or drawer.

Which of the Following Is a Correct Statement About the Petty