Q11RQ - Horngren'S Financial And Managerial Accounting

Question

What are the controls needed to secure the petty cash fund?

Step-by-Step Solution

Answer

There are three controls needed to secure the petty cash.

Step 1: Definition of petty cash fund

The petty cash fund is the fund used to make the payment of miscellaneous expenses.

Step 2: Controls needed to secure the patty cash fund

1. The control of the petty cash fund needed to allot a sufficient amount into the petty cash fund.
2. The control of the petty cash needed to assign the responsibilities of the petty cash fund to the person.
3. The control of the petty cash fund needed to make the payment of the petty cash fund with a petty cash ticket.