The replenishment of the petty cash fund was recorded twice. This would cause
A) expenses to be overstated.
B) expenses to be understated.
C) petty cash to be overstated.
D) petty cash to be understated.

Question

Quizplus · Accepted Answer

Recording the replenishment of the petty cash fund twice would lead to recording the expenses associated with the replenishment twice, thus overstating the expenses.

The Replenishment of the Petty Cash Fund Was Recorded Twice