Which of the following statements about petty cash funds is true?
A) The size of petty cash funds depends on business needs and is usually large enough so that the company can pay its bills for at least one week.
B) A journal entry is made each time as petty cash is disbursed.
C) At any time, the total of the cash and the receipts in the petty cash box should total the amount originally put into the petty cash fund.
D) No source documentation is necessary to create the journal entry that supports the petty cash replenishment.
E) Both a and c are true.
Correct Answer:
Verified
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