5) Which of the following accounts would most likely be debited in the replenishment of petty cash?

A) Cash

B) Petty Cash

C) Postage Expense

D) Withdrawals

 

6) The credit recorded in the journal entry to establish the petty cash fund is to:

A) Cash.

B) Petty Cash.

C) Postage Expense.

D) Withdrawals.

7) A $50 petty cash fund has cash of $20 and valid receipts for $40. The entry to replenish the fund would include a:

A) credit to Cash for $30.

B) credit to Cash for $40.

C) credit to Petty Cash for $30.

D) debit to Petty Cash for $40.

 

8) The entry establishing a $175 petty cash fund would include a:

A) debit to Cash for $175.

B) credit to Petty Cash for $175.

C) debit to Petty Cash for $175.

D) debit to Miscellaneous Expense for $175.

 

9) The Petty Cash account is debited when:

A) the account is being replenished.

B) the account balance is being decreased.

C) the account balance is being increased.

D) when the custodian pays for postage from petty cash.

 

10) The entry to replenish the petty cash fund debited Insurance Expense for postage. This would cause:

A) Petty Cash to be overstated.

B) Petty Cash to be understated.

C) Postage Expense to be overstated.

D) Insurance Expense to be overstated.

11) Riley’s Limousines’ entry to establish a $75 petty cash fund for the office would include a:

A) debit to Cash for $75.

B) credit to Petty Cash for $75.

C) credit to Cash for $75.

D) debit to Office Expense for $75.

 

12) The entry to replenish the petty cash fund included a debit to Equipment instead of Supplies for the purchase of supplies. This would cause:

A) petty cash to be overstated.

B) petty cash to be understated.

C) assets to be overstated.

D) supplies to be understated.

 

13) The replenishment of the petty cash fund was recorded twice. This would cause:

A) expenses to be overstated.

B) expenses to be understated.

C) petty cash to be overstated.

D) petty cash to be understated.

 

14) The entry to establish the petty cash fund was not completed. This would cause:

A) cash to be understated.

B) cash to be overstated.

C) assets to be understated.

D) assets to be overstated.

 

 



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