A business should make all payments by check, including payment from the Petty Cash Fund.

Question

Quizplus · Accepted Answer

While it is recommended to use checks for most business payments to provide an audit trail and prevent fraud, petty cash is typically used for small, immediate expenses that may not be practical to pay by check. Petty cash payments can instead be documented through receipts and reconciled through regular auditing processes.

A Business Should Make All Payments by Check, Including Payment