Question

When a petty cash fund is in use: Multiple Choice Petty Cash is debited when funds are replenished. Petty Cash is credited when funds are replenished. Cash is debited when funds are replenished. Expenses paid with petty cash are recorded when the fund is replenished.

Answer 1

Answer:

The most suitable.answer is Expenses paid with petty cash are recorded when the fund is replenished.

Explanation:

Petty cash system is a system that intends to control.and record.minor cash transactions of a firm. It also acts as a controlling mechanism against fraud and other misconducts.

The petty cash is reimbursed at an amount that was spent by the firm in the given period. This reduces the cash waistage..