When a petty cash fund is in use:
A) Cash is debited when funds are replenished.
B) Expenses are not recorded.
C) Petty Cash is credited when funds are replenished.
D) Expenses paid with petty cash are recorded when the fund is replenished.
E) Petty Cash is debited 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. Petty cash is debited and the appropriate expense accounts are credited when funds are replenished.

When a Petty Cash Fund Is in Use