Question :
101. A key factor in a voucher system includes all of : 1257946
101. A key factor in a voucher system includes all of the following except:
A. Only approved departments and individuals are authorized to incur an obligation that will result in the payment of cash.
B. Procedures for purchasing, receiving and paying for merchandise are divided among several departments.
C. The system limits the individuals that can incur cash payment obligations for a company.
D. It isapplied to purchases of merchandise inventory and all other expenses.
E. It is not necessary if the supplier provides both receiving report and invoice with the merchandise shipped.
102. The entry to establish a petty cash fund includes:
A. A debit to Cash and a credit to Petty Cash.
B. A debit to Cash and a credit to Cash Over and Short.
C. A debit to Petty Cash and a credit to Cash.
D. A debit to Petty Cash and a credit to Accounts Receivable.
E. A debit to Cash and a credit to Petty Cash Over and Short.
103. Ferguson Co. decides to establish a petty cash fund with a beginning balance of $200. The company decides that any purchase under $25 can be processed through petty cash instead of the voucher system. The journal entry to record establishing the account is:
A. Debit Cash $200 and credit Petty Cash $200.
B. Debit Cash $200 and credit Cash Over and Short $200.
C. Debit Petty Cash $200 and credit Cash $200.
D. Debit Petty Cash $200; credit Cash $175; and credit Cash Over and Short $25.
E. Debit Cash $200 and credit Petty Cash Over and Short $200.
104. The entry to record reimbursement of the petty cash fund for postage expense should include:
A. A debit to Postage Expense.
B. A debit to Petty Cash.
C. A debit to Cash.
D. A debit to Cash Short and Over.
E. A debit to Supplies.
105. Ferguson Co. has a $200 petty cash fund. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. The journal entry to record the reimbursement of the account includes a:
A. Debit to Petty Cash for $200.
B. Debit to Cash Over and Short for $18.
C. Credit to Cash for $182.
D. Credit to Inventory for $127.
E. Credit to Cash Over and Short for $18.
106. When a petty cash fund is in use:
A. Expenses paid with petty cash are recorded when the fund is replenished.
B. Petty Cash is debited when funds are replenished.
C. Petty Cash is credited when funds are replenished.
D. Expenses are not recorded.
E. Cash is debited when funds are replenished.
107. When reimbursing the petty cash fund:
A. Cash is debited.
B. Petty Cash is credited.
C. Petty Cash is debited.
D. Appropriate expense accounts are debited.
E. No expenses are recorded.
108. Assume that the custodian of a $450 petty cash fund has $64.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:
A. A debit to Cash for $379.50.
B. A credit to Cash Over and Short for $3.00.
C. A debit to Petty Cash for $382.50.
D. A credit to Cash for $385.50.
E. A debit to Cash for $385.50.
109. Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:
A. A debit to Cash for $377.50.
B. A debit to Cash Over and Short for $5.00.
C. A debit to Petty Cash for $382.50.
D. A credit to Cash for $382.50.
E. A debit to Cash for $387.50.
110. A company wants to decrease its $200 petty cash fund to $175. The entry to reduce the fund is:
A. Debit Cash Over and Short for $25; credit Petty Cash $25.
B. Debit to Cash $25; credit Petty Cash $25.
C. Debit Miscellaneous Expenses $25; credit Cash $25.
D. Debit Petty Cash for $175; debit Cash Over and Short $25; credit Cash $200.
E. Debit Petty Cash $25; credit Cash $25.
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