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If the Petty Cash Fund Is Not Reimbursed Just Prior

Question 8

Multiple Choice

If the Petty Cash fund is not reimbursed just prior to year end and an appropriate adjusting entry is not made, then


A) The petty cash account is to be returned to the company's cashier
B) Expenses are overstated and Cash is understated
C) Cash is overstated and expenses are understated
D) Cash is overstated and expenses are overstated

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