Petty Cash Management Quiz

Test your knowledge on petty cash management with these key questions. Learn about vouchers, controls, and fund policies efficiently.

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What is petty cash?

Cash kept in a safe

Cash used for small expenses

Cash used for large expenses

Cash kept in a bank account

Who is typically responsible for managing petty cash?

CEO

CFO

Office manager

Janitor

What is a petty cash voucher?

A receipt for a large expense

A document used to record petty cash transactions

A request for a salary advance

A check for petty cash

Why is it important to reconcile petty cash regularly?

To ensure there is enough cash for expenses

To identify any discrepancies or errors

To reduce the amount of petty cash needed

To make it easier to steal cash

What is the purpose of a petty cash fund?

To pay for large expenses

To provide quick access to cash for small expenses

To invest excess cash

To pay employee salaries

What is the role of a petty cash custodian?

To spend petty cash on personal expenses

To manage and safeguard the petty cash fund

To keep the petty cash fund in a personal bank account

To avoid recording petty cash transactions

How often should petty cash be replenished?

Every month

Every quarter

As needed

Once a year

What is the first step in establishing a petty cash fund?

Determine the amount of cash needed

Allocate funds from the budget

Select a petty cash custodian

Create a petty cash policy

Which of the following is an example of a petty cash expense?

Employee salaries

Rent payment

Office supplies

Advertising expenses

#10

What is the journal entry to reimburse petty cash?

Debit Cash, Credit Petty Cash

Debit Petty Cash, Credit Cash

Debit Petty Cash, Credit Expense Account

Debit Expense Account, Credit Petty Cash

#11

Which of the following is not a petty cash control measure?

Segregation of duties

Regular reconciliation

Keeping petty cash in an unlocked drawer

Use of petty cash vouchers

#12

What is the maximum amount of cash typically kept in a petty cash fund?

$100

$500

$1,000

$10,000

#13

What is the purpose of a petty cash reconciliation?

To determine if the petty cash fund needs to be increased

To verify the accuracy of petty cash transactions

To reduce the amount of petty cash on hand

To prevent employees from stealing petty cash

#14

Which of the following is a common method of replenishing a petty cash fund?

Writing a check to the petty cash custodian

Withdrawing cash from a personal bank account

Selling company assets

Using a credit card

#15

How can a company prevent petty cash fraud?

By having multiple petty cash funds

By conducting surprise audits

By allowing the petty cash custodian to keep the funds in a personal bank account

By not recording petty cash transactions

#16

What is the purpose of a petty cash policy?

To limit the amount of petty cash on hand

To establish guidelines for the use of petty cash

To prevent employees from accessing petty cash

To increase the frequency of petty cash reconciliations