When should the petty cash fund be replenished?
a) Whenever the accountant feels like it.
b) At the beginning of the accounting period.
c) When funds are high.
d) At the end of the accounting period.
Answer (2)
The petty cash fund should be replenished when the balance runs low to maintain accuracy in financial records. It allows for better tracking of minor expenses. This practice ensures the business can effectively manage its day-to-day costs. ;
The petty cash fund should be replenished whenever the balance runs low to ensure smooth operational cash flow and accurate tracking of minor expenses. This practice enables businesses to effectively manage their daily costs. Monitoring petty cash levels helps avoid delays in operations due to insufficient cash on hand.
;
