The credit recorded in the journal entry to establish the petty cash fund is to:
A) Cash.
B) Petty Cash.
C) Accounts Payable.
D) Withdrawals.

Question

Quizplus · Accepted Answer

When establishing a petty cash fund, the credit is made to the Cash account because it represents a decrease in the company's cash balance, reflecting the movement of cash from the main cash account to the petty cash fund.

The Credit Recorded in the Journal Entry to Establish the Petty