Question : 11) If the petty cash fund not replenished the balance : 1212716

11) If the petty cash fund is not replenished on the balance sheet date:

A) cash and income will be overstated.

B) income will be understated.

C) cash will be understated.

D) liabilities will be understated.

 

12) A petty cash fund, established with a $300 balance, had petty cash tickets totalling $269 and cash in the amount of $29. The entry to replenish the fund would include a:

A) credit to Cash in Bank for $269.

B) debit to Petty Cash for $271.

C) debit to Cash Short and Over for $2.

D) credit to Petty Cash for $271.

 

13) A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

A) credit to Cash in Bank for $250.

B) debit to Petty Cash for $219.

C) debit to Cash Short and Over for $3.

D) credit to Cash in Bank for $216.

14) A petty cash fund, established with a $225 balance, had the following petty cash tickets and $14 in cash:

 

Office supplies

$51

Delivery expense

62

Postage expense

94

 

The entry to replenish the fund would be:

A)

Petty Cash

207

 

        Cash in Bank

 

207

 

B)

Office Supplies

51

 

Delivery Expense

62

 

Postage Expense

94

 

Cash Short and Over

4

 

        Cash in Bank

 

211

 

C)

Office Supplies

51

 

Delivery Expense

62

 

Postage Expense

94

 

        Cash in Bank

 

207

 

D)

Cash in Bank

211

 

        Petty Cash

 

211

 

 

15) A petty cash fund, established with a $250 balance, had petty cash tickets totalling $219 and cash in the amount of $34. The entry to replenish the fund would include a:

A) credit to Cash Short and Over for $3.

B) credit to Cash in Bank for $250.

C) debit to Petty Cash for $219.

D) debit to Cash in Bank for $216.

16) A petty cash fund, established with a $200 balance, had the following petty cash tickets as well as $34 in cash:

 

Office supplies

$42

Delivery expense

39

Miscellaneous expense

12

Postage expense

75

 

The entry to replenish the fund would be:

A)

Petty Cash

168

 

        Cash in Bank

 

168

 

B)

Office Supplies

42

 

Delivery Expense

39

 

Miscellaneous Expense

12

 

Postage Expense

75

 

        Cash in Bank

 

168

 

C)

Office Supplies

42

 

Delivery Expense

39

 

Miscellaneous Expense

12

 

Postage Expense

75

 

        Cash in Bank

 

166

        Cash Short and Over

 

2

 

D)

Cash in Bank

168

 

        Petty Cash

 

168

 

 

17) Cash is the first asset listed on the balance sheet because it is:

A) the most liquid asset.

B) valuable.

C) subject to theft.

D) subject to errors.

18) Assuming Charlton Company has the following December 31 year end account balances:

 

Chequing

$2,450

Savings

5,650

Petty cash

250

 

Cash and Cash equivalents would be reported on the Balance Sheet as:

A) $2,450.

B) $5,650.

C) $250.

D) $8,350.

 

19) In a system of good internal control, a payment to a supplier requires which documents for proper approval?

A) a journal entry, a supplier invoice, and a description of the goods being purchased

B) a receiving report, an invoice, and a purchase order

C) a purchase order, a journal entry, and a price catalog

D) a supplier invoice, a bill of lading, and the supplier’s financial statements

 

20) A petty cash fund was established with a $400 balance. It currently has cash of $10 and petty cash tickets as shown below.

 

Travel expense

$120

Office supplies

$200

Equipment rental expense

$70

 

The journal entry to replenish the account would be which of the following:

A) Debit various expenses $390, credit Cash  $390

B) Debit various expenses $390, credit Petty Cash $390

C) Debit Cash $10, credit various expenses $10

D) Credit Petty Cash $390, debit Cash $390

 

21) A petty cash fund was established with a $400 balance. It currently has cash of $9 and petty cash tickets as shown below.

 

Travel expense

$120

Office supplies

$200

Equipment rental expense

$70

 

The journal entry to replenish the account would be which of the following:

A) Debit to Cash Short & Over for $1

B) Credit Cash Short & Over for $1

C) Debit Petty Cash for $1

D) Credit Petty Cash for $1

 

22) A petty cash fund was established with a $400 balance. It currently has cash of $15 and petty cash tickets as shown below.

 

Travel expense

$120

Office supplies

$200

Equipment rental expense

$70

 

The journal entry to replenish the account would be which of the following:

A) Debit to Cash Short & Over for $5

B) Credit Cash Short & Over for $5

C) Debit Petty Cash for $5

D) Credit Petty Cash for $5