120. The entry necessary to establish a petty cash
fund should include:
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
E. A debit to Cash and a credit to Petty Cash Over and
121. The entry to record reimbursement of the petty
cash fund for postage expense should include:
A. A debit to Postage
B. A debit to Petty Cash.
C. A debit to Cash.
D. A debit to Cash Short and Over.
E. A debit to Supplies.
122. 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.
123. In 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.
124. 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 credit to Cash Over and Short for $5.00.
C. A debit to Petty Cash for $382.50.
D. A credit to Cash for
E. A debit to Cash for $387.50.
125. A company plans to decrease a $200 petty cash
fund to $75. The current balance in the account includes $45 petty cash payment
in receipts and $165 in currency. The entry to reduce the fund will include
A. Debit to Cash Short and Over for $10.
B. Debit to Cash for $90.
C. Debit to Miscellaneous Expenses for $35.
D. Credit to Petty Cash for $165.
E. Credit to Cash for $90.
$200.00 – 165.00 – 45.00 = $-10.00 cash overage
$125.00 – 45.00 + 10.00 = $90.00 debit to cash
126. A company had $43 missing from petty cash that
was not accounted for by petty cash receipts. The correct procedure is
A. Debit Cash Over and
Short for $43.
B. Credit Cash Over and Short for $43.
C. Debit Petty Cash for $43.
D. Credit Petty Cash for $43.
E. Credit Cash for $43.
127. Martha Company has an established petty cash fund
in the amount of $500. The fund was last reimbursed on November 30. At the end
of December, the fund contained the following petty cash receipts:
If, in addition to these receipts, the petty cash fund contains $301 of cash,
the journal entry to reimburse the fund on December 31 will include:
A. A debit to Transportation-In of $73.
B. A debit to Transportation-Out of $73.
C. A credit to Office Supplies of $66.
D. A credit to Cash Over and Short of $10.
E. A debit to Cash Over and
Short of $10.
128. An analysis that explains any differences between
the checking account balance according to the depositor’s records and the
balance reported on the bank statement is a(n):
A. Internal audit.
B. Bank reconciliation.
C. Bank audit.
D. Trial reconciliation.
E. Analysis of debits and credits.
129. On a bank reconciliation, an unrecorded debit
memorandum for printing checks is:
A. Noted as a memorandum only.
B. Added to the book balance of cash.
C. Deducted from the book
balance of cash.
D. Added to the bank balance of cash.
E. Deducted from the bank balance of cash.