1.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 Receivable.E)A debit to Cash and a credit to Petty Cash Over and Short.2.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.3.Outstanding checks refer to checks that have been:A)Written recorded sent to payees and received and paid by the bank.B)Written and not yet recorded in the company books.C)Held as blank checks.D)Written then recorded on the company books and sent to the customer but have not yet been paid by the bank.E)Issued by the bank.4.A company made a bank deposit on September 30 that did not appear on the bank statement dated as of September 30. In preparing the September 30 bank reconciliation the company should:A)Deduct the deposit from the bank statement balance.B)Send the bank a debit memorandum.C)Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.D)Add the deposit to the book balance of cash.E)Add the deposit to the bank statement balance.
