Answer the following statements true (T) or false (F)
1. A petty cash fund may be established for minor expenditures, such as postage.
2. A petty cash fund is established by making a check payable to Petty Cash, cashing the check, and placing the funds in the cash register.
3. The journal entry to record the set-up of a petty cash fund is to debit Petty Cash and to credit Cash.
4. The total of cash in the petty cash box plus the amount of the petty cash ticket receipts should total the beginning amount of the petty cash fund.
5. Because petty cash funds are for small dollar amounts, internal control policies to govern the fund are not necessary.
6. Syrio's Snowboards has decided to increase its petty cash fund from $50 to $100. The journal entry to record this increase will include a debit to petty cash for $100.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
6. FALSE
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