When a petty cash fund is in use:
A)Expenses paid with petty cash are recorded only when the fund is reimbursed.
B)Petty Cash is debited when funds are reimbursed.
C)Petty Cash is credited when funds are reimbursed.
D)Expenses are not recorded.
E)Cash is debited when funds are reimbursed.

Question

Quizplus · Accepted Answer

Expenses paid with petty cash are recorded when the fund is reimbursed to ensure that the expenses are properly accounted for and the petty cash fund is restored to its original amount.

When a Petty Cash Fund Is in Use