15) The entry to establish the petty cash fund debited Misc. Expense. This would cause:

A) revenues to be overstated.

B) revenues to be understated.

C) expenses to be overstated.

D) expenses to be understated.

 

16) Which of the following transactions would be recorded in an auxiliary petty cash record?

A) Purchase of first aid supplies

B) Payment of Salaries Expense

C) Owner Withdrawal

D) Purchase of a $2,000 piece of Equipment

 

17) Which of the following transactions would most likely not be recorded in an auxiliary petty cash record?

A) Purchase of first aid supplies

B) Purchase of postage stamps

C) Payment on a $600 utility bill

D) Payment of gas for the company vehicle

 

18) Petty Cash is an asset shown on the balance sheet.

 

19) The Petty Cash account is used to pay for small items such as postage stamps and supplies.

20) An employee assigned the responsibility for overseeing the petty cash fund is called the custodian.

 

21) The normal balance of the Petty Cash account is a credit.

 

22) The Petty Cash account should always be debited when the fund is replenished.

 

Indicate which effect(s) each situation will have:

 

1.New check written

2.Recorded in the general journal

3.Recorded in auxiliary petty cash record

4.Petty cash voucher prepared

 

23) ________ Establishment of petty cash

 

24) ________ Bought Supplies on account

 

 

 



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