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 cheque.
C) the owner wants to make personal withdrawals easily.
D) None of these are correct.

Question

Quizplus · Accepted Answer

A change fund is used when a company expects to have cash transactions on a daily basis. It allows the company to have a set amount of cash on hand to make change for customers and complete transactions quickly without needing to constantly withdraw cash from a bank account. The other options, paying postage expenses without writing a check and making personal withdrawals easily, do not require the use of a change fund.

A Company Would Use a Change Fund If