The Petty Cash Fund balance of cash is the same as the balance in the general ledger Cash account.

Question

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The Petty Cash Fund is a separate account from the general ledger Cash account. The Petty Cash Fund balance only reflects the amount of cash that has been set aside for small expenses, while the general ledger Cash account reflects all cash transactions for the business. Therefore, the balances will not always be the same.

The Petty Cash Fund Balance of Cash Is the Same