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Gross Company Established a $250 Petty Cash Fund on January

Question 63

Multiple Choice

Gross Company established a $250 petty cash fund on January 1. On March 1, the fund contained $160 in receipts for miscellaneous expenses and $85 in cash. If the company records both the disbursements and replenishments to the fund, what effect will it have on the elements of the financial statements?


A) No effect on total assets
B) Decrease stockholders' equity by $160
C) Increase stockholders' equity by $165
D) Decrease total assets by $165

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