Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Petty Cash

Financial Accounting

6. Internal Controls and Reporting Cash

Petty Cash

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

What is the primary purpose of using a voucher system with the petty cash fund?

To allow employees to borrow cash for personal use

To increase the amount of cash available in the fund

To eliminate the need for periodic reconciliation of the petty cash fund

To provide documentation and control over petty cash disbursements

Previous problemNext problem

Verified step by step guidance

Understand the concept of a petty cash fund: A petty cash fund is a small amount of cash kept on hand to cover minor expenses that are impractical to pay by check or electronic transfer.

Learn the purpose of a voucher system: A voucher system is implemented to ensure proper documentation and control over disbursements from the petty cash fund. It helps track how the money is spent and ensures accountability.

Recognize the importance of documentation: Each petty cash transaction should be supported by a voucher or receipt that specifies the amount, purpose, and date of the expense. This documentation is crucial for accurate record-keeping.

Understand the role of control: The voucher system prevents misuse of the petty cash fund by requiring approval and verification for each disbursement. This ensures that funds are used appropriately and reduces the risk of fraud.

Connect the purpose of the voucher system to the correct answer: The primary purpose of using a voucher system with the petty cash fund is to provide documentation and control over petty cash disbursements, ensuring accountability and proper usage of funds.