A petty cash fund operates like a bank savings account.

Question

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A petty cash fund operates like a bank savings account in the sense that it is a small amount of cash that is kept on hand for minor expenses, just like how a savings account is used for minor deposits and expenses. It is managed and controlled carefully by a designated person, such as an office manager or accountant, to ensure that it is used appropriately and the balance is replenished when necessary. Transactions are recorded and receipts are kept for each disbursement, similar to how deposits and withdrawals are recorded in a bank account.

A Petty Cash Fund Operates Like a Bank Savings Account