The petty cash fund must be replenished on the balance sheet date, otherwise the ledger will not balance.

Name: The petty cash fund must be replenished on the balance sheet date, otherwise the ledger will not balance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The petty cash fund does not need to be replenished on the balance sheet date for the ledger to balance. The amount in the petty cash fund is a set imprest amount, and any expenditures from the fund are recorded as expenses when they occur, not when the fund is replenished.

The Petty Cash Fund Must Be Replenished on the Balance