Hill Company established a petty cash fund of $500.The first transaction was the purchase of stamps for $46.Which of the following statements is CORRECT?

Question

Quizplus · Accepted Answer

A) The petty cash custodian prepares a petty cash voucher to list the item purchased: This statement is correct. When petty cash is used, the custodian should prepare a voucher to document the transaction.
B) The amount of cash on hand should equal $454: This statement is correct. Since the petty cash fund was established with $500 and $46 was used, the amount of cash on hand should be $454.
C) The amount of cash on hand and the paid petty cash voucher should be maintained in a cash box or other secure device: This statement is correct. To ensure proper control over petty cash, the cash and vouchers should be kept in a secure location, such as a locked cash box.
Therefore, all three statements are correct, and the best choice is D.

Hill Company Established a Petty Cash Fund of $500