At the time a petty cash fund is replenished,an adjustment must be made to record its replenishment and to recognize the various expenses incurred.

Question

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When replenishing a petty cash fund, an adjustment must be made to record the replenishment and recognize any expenses incurred since the last replenishment. This ensures that the petty cash account remains accurate and up-to-date.

At the Time a Petty Cash Fund Is Replenished,an Adjustment