Gross Company established a $250 petty cash fund on January 1. On March 1, the fund contained $160 in receipts for miscellaneous expenses and $85 in cash. If the company records both the disbursements and replenishments to the fund, what effect will it have on the elements of the financial statements?
A. Decrease total assets by $165
B. Decrease stockholders' equity by $160
C. Increase stockholders' equity by $165
D. No effect on total assets
Answer: A
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