The sum of the cash in the petty cash fund and the total of the petty cash tickets should equal the opening balance in petty cash at all times.

Question

Quizplus · Accepted Answer

This statement is true. The purpose of the petty cash fund is to have a small amount of cash available for small, routine expenses, such as office supplies or coffee for a meeting. The opening balance in petty cash is the amount initially placed in the fund, and this balance should be maintained by adding the total amount of cash disbursed through petty cash tickets to the remaining cash in the fund. Therefore, the sum of the cash in the petty cash fund and the total of the petty cash tickets should equal the opening balance in petty cash at all times.

The Sum of the Cash in the Petty Cash Fund