A petty cash fund is established to pay for minor purchases, such as office supplies or small expenses. Answer: C It is recommended to have at least two custodians for a petty cash fund to ensure accountability and prevent fraud. Answer: D A petty cash fund typically uses cash to make purchases, not checks. Checks are usually used for larger purchases and expenses.

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A Petty Cash Fund

Question 90

Multiple Choice

A petty cash fund:

A) is established to pay large nonrecurring expenses.
B) is established to pay for minor purchases.
C) should have a least two custodians.
D) should issue checks for certain purchases.

Correct Answer: