Question

Determine which of the statement(s) are correct if a petty cash account is not replenished at the end of the accounting period. (check all that apply.) multiple select question. the balance sheet would show an overstated cash asset. the balance sheet would show an understated cash asset. expenses would not be recorded in the period in which they were incurred. the income statement would reflect a net income amount that was too high.

Answer 1

If Petty Cash is not replenished at the end of the accounting period:

• the balance sheet would show an overstated cash asset.
• expenses would not be recorded in the period in which they were incurred.
• the income statement would reflect a net income amount that was too high.

What happens when petty cash is not replenished?

Because the cash that was meant to go to the petty cash was not taken from the cash account, this account will have more than it should (overstated).

The expenses which were incurred and recorded in the petty cash would not be accounted for which means that the income would be overstated as these expenses were not deducted from it.

Find out more on the petty cash at brainly.com/question/17439772.

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