Petty Cash basics
What is petty cash?
This small fund is used for minor company expenses.
Petty cash is used for small, everyday business expenses.
True
what types of items is petty cash generally used for?
Small, everyday expenses (like stamps, snacks, or office supplies)
Petty cash is the same as an employee’s salary.
False
What is a petty cash voucher?
its a slip that must be filled out whenever petty cash is used.
The petty cash fund is considered an asset on the balance sheet.
True
What is the company’s cash (bank account)?
When petty cash is replenished, this account is reduced
Petty cash can be used for large purchases like computers or furniture.
False
Petty cash is classified as this type of account on the balance sheet.
Asset
A petty cash voucher is used to record every petty cash transaction.
True