Which of the following statements concerning a petty cash fund is not correct?
A. A petty cash fund acts as a control by establishing a limited amount of cash to use for specific types of expenses.
B. A petty cash fund is similar to an imprest payroll account.
C. The company’s petty cash custodian is responsible for operating the petty cash fund.
D. To avoid the administrative costs of the use of purchasing cards, or Pcards, many organizations have started using petty cash funds.
Answer:D
Which of the following statements concerning a petty cash fund is not correct?
A. A petty cash fund acts as a control by establishing a limited amount of cash to use for specific types of expenses. B. A petty cash fund is similar to an imprest payroll account. C. The company’s petty cash custodian is responsible for operating the petty cash fund. D. To avoid the administrative costs of the use of purchasing cards, or Pcards, many organizations have started using petty cash funds.