When a petty cash fund is in use:
A)Expenses paid with petty cash are recorded when the fund is replenished.
B)Petty Cash is credited when funds are replenished.
C)Petty Cash is debited when funds are replenished.
D)Expenses paid with petty cash are recorded when the fund is replenished and petty cash is debited when funds are replenished.
E)Expenses paid with petty cash are recorded when the fund is replenished and petty cash is credited when funds are replenished.

Question

Quizplus · Accepted Answer

When a petty cash fund is in use, expenses paid with petty cash are recorded when the fund is replenished. This is because the replenishment process involves accounting for the expenses incurred and restoring the petty cash fund to its original amount.

When a Petty Cash Fund Is in Use