INTERMEDIATE ACCOUNTING CH. 1
Problem 1-2 Multiple choice (IAA)
1. What is the major purpose of an imprest petty cash fund?
a. To effectively plan cash inflows and outflows.
b. To ease the payment of cash to vendors
c. To determine the honesty of the petty cashier
d. To effectively control cash disbursements
2. The imprest petty cash fund account is debited
a. Only when the fund is created
b. When the fund is created and everytime it is replenished
c. When the fund is created and when the fund is increased
d. When the fund is created and when the fund is decreased
3. Petty cash fund is
a. Separately classified as current asset
b. Money kept on hand for making minor disbursements of coin and currency
rather than by writing checks
c. Set aside for the payment of payroll
d. Restricted cash
4. Which statement about petty cash fund is not true?
a. Each disbursement from petty cash should be supported by a petty cash voucher
b. The creation of a petty cash fund requires a journal entry to reflect the transfer of fund
out of the general cash account
c. At any time, the sum of the cash in the petty cash fund and the total of petty cash
vouchers should equal the amount for which the imprest petty cash fund was
established
d. With the establishment of an imprest petty cash fund, one person is given the
authority and responsibility for issuing checks to cover minor disbursements
This study source was downloaded by 100000899194722 from CourseHero.com on 05-30-2025 15:09:23 GMT -05:00
https://www.coursehero.com/file/249171909/Problem-1-3-INTACC-1pdf/
Problem 1-2 Multiple choice (IAA)
1. What is the major purpose of an imprest petty cash fund?
a. To effectively plan cash inflows and outflows.
b. To ease the payment of cash to vendors
c. To determine the honesty of the petty cashier
d. To effectively control cash disbursements
2. The imprest petty cash fund account is debited
a. Only when the fund is created
b. When the fund is created and everytime it is replenished
c. When the fund is created and when the fund is increased
d. When the fund is created and when the fund is decreased
3. Petty cash fund is
a. Separately classified as current asset
b. Money kept on hand for making minor disbursements of coin and currency
rather than by writing checks
c. Set aside for the payment of payroll
d. Restricted cash
4. Which statement about petty cash fund is not true?
a. Each disbursement from petty cash should be supported by a petty cash voucher
b. The creation of a petty cash fund requires a journal entry to reflect the transfer of fund
out of the general cash account
c. At any time, the sum of the cash in the petty cash fund and the total of petty cash
vouchers should equal the amount for which the imprest petty cash fund was
established
d. With the establishment of an imprest petty cash fund, one person is given the
authority and responsibility for issuing checks to cover minor disbursements
This study source was downloaded by 100000899194722 from CourseHero.com on 05-30-2025 15:09:23 GMT -05:00
https://www.coursehero.com/file/249171909/Problem-1-3-INTACC-1pdf/
