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Hill Company Established a Petty Cash Fund of $500

Question 153

Multiple Choice

Hill Company established a petty cash fund of $500. The first transaction was the purchase of stamps for $46. Which of the following statements is CORRECT?


A) The petty cash custodian prepares a petty cash voucher to list the item purchased.
B) The amount of cash on hand should equal $454.
C) The amount of cash on hand and the cash voucher should be maintained in a cash box or other secure device.
D) All of the statements are correct.

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