The amount in the petty cash fund plus the sum of the petty cash vouchers should at all times equal the amount shown in the Petty Cash account.

Question

Quizplus · Accepted Answer

This statement is true. The petty cash fund is used to pay for small expenses in the office, and a record is kept of the amount spent through petty cash vouchers. The total of the fund plus the vouchers should equal the amount shown in the Petty Cash account, which is maintained in the company's accounting records. This helps to ensure that there is no discrepancy between the recorded amount and the actual amount of cash on hand.

The Amount in the Petty Cash Fund Plus the Sum