Question

When reimbursing the petty cash fund: Multiple Choice Cash is debited. Petty Cash is credited. Petty Cash is debited. No expenses are recorded.

Answer 1

Answer: Appropriate expense account are debited

Explanation:

Here is the complete question:

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

Petty cash funds are simply the little funds that is used by an organization or company to settle its minor expenses. Examples include expenses on postage stamp or snacks during meetings.

It should be noted that when reimbursing the petty cash fund, the appropriate expense account has to be debited.