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The Purpose of Establishing a Petty Cash Fund Is To

Question 76

Multiple Choice

The purpose of establishing a petty cash fund is to:


A) Achieve internal control over small cash disbursements not made by check.
B) Keep track of expenditures paid out of cash receipts from customers prior to deposit.
C) Ensure that the amount of cash in the bank does not become excessive.
D) Keep enough cash on hand in the office to cover all normal operating expenses of the business for a period of time.

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