Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

Question

Quizplus · Accepted Answer

It is common practice for businesses to maintain separate ledger accounts for each type of cash they handle, such as bank accounts, petty cash, and cash on hand. This helps to clearly track and record each type of transaction, making it easier to manage and reconcile the company's finances.

Businesses Who Have Several Bank Accounts, Petty Cash, and Cash