Which of the following statements is false?
A) The imprest petty cash system in effect adheres to the rule of disbursement by check.
B) Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year-end.
C) The Petty Cash account is debited when the fund is replenished.
D) All of these answers are false.

Question

Quizplus · Accepted Answer

In the imprest petty cash system, the Petty Cash account is not debited when the fund is replenished. Instead, expenses are recorded in their respective expense accounts, and the Cash account is credited.

Which of the Following Statements Is False