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Problem 1: A petty cash system is designed to
a. Pay small miscellaneous expenses
b. Account for all small cash receipts and disbursements
c. Handle cash sales
d. Cash checks for employees.
Problem 2: Which of the following statements is true?
a. A cash short and over account is not generally accepted.
b. A cash short and over account is debited when the petty cash fund proves out over.
c. A cash short and over account is debited when the petty cash funs proves out short.
d. A cash short and over account is a contra account to Cash.
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