Cb14 - 5.1 - Petty Cash

10 Questions | Total Attempts: 815

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Cash Quizzes & Trivia

Vega - CB14 - Petty Cash: An amount of money issued to a department used on a revolving basis to pay for expenses of a nominal amount when other procurement methods are not practicable or when cash is required.


Questions and Answers
  • 1. 
    In a Petty Cash context, Cash includes:
    • A. 

      Checks

    • B. 

      Currency

    • C. 

      Gift Cards

    • D. 

      Credit Card Receipts

    • E. 

      IOUs

  • 2. 
    Petty cash should be used on an ______________ basis.
  • 3. 
    Petty Cash should be used for:
    • A. 

      Payroll expenses

    • B. 

      Loans to employees

    • C. 

      To open outside bank accounts

    • D. 

      Expenses of a nominal amount

    • E. 

      Official business functions

  • 4. 
    Petty Cash funds are usually the least desirable form of payment because they are ________ secure.
  • 5. 
    Petty Cash funds are always limited to:
    • A. 

      $2,500

    • B. 

      $500

    • C. 

      5 percent of the day's sales

    • D. 

      Whatever the fund custodian needs

    • E. 

      None of the above

  • 6. 
    A custodian is the employee directly responsible for the fund.
    • A. 

      True

    • B. 

      False

  • 7. 
    Petty Cash transactions must always be recorded with:
    • A. 

      A Receipt

    • B. 

      Manager

    • C. 

      Memorandum

    • D. 

      CEO of the company

    • E. 

      A and C

  • 8. 
    Audits of funds are usually conducted, but not required.
    • A. 

      True

    • B. 

      False

  • 9. 
    Do not ____________ petty cash funds with other accounts.
  • 10. 
    Company's should never use petty cash
    • A. 

      True

    • B. 

      False

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