If the Petty Cash fund is not reimbursed just prior to year end and an appropriate adjusting entry is not made, then

Question

TuteeHUB · Accepted Answer

Cash is overstated and expenses are overstated

TuteeHUB · Answer

The petty cash account is to be returned to the company‘s cashier

TuteeHUB · Answer

Expenses are overstated and Cash is understated

TuteeHUB · Answer

Cash is overstated and expenses are understated

1.	If the Petty Cash fund is not reimbursed just prior to year end and an appropriate adjusting entry is not made, then
A.	The petty cash account is to be returned to the company‘s cashier
B.	Expenses are overstated and Cash is understated
C.	Cash is overstated and expenses are understated
D.	Cash is overstated and expenses are overstated
Answer» D. Cash is overstated and expenses are overstated

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