Petty Cash Question and Answers

1. What is petty cash primarily used for?

A) Large business transactions
B) Minor expenses
C) Payroll
D) Investments

2. Who is typically responsible for managing petty cash?

A) The CEO
B) The receptionist
C) A designated petty cash custodian
D) The accounting department

3. What is a common limit for petty cash funds in many organizations?

A) $50
B) $100
C) $500
D) $1,000

4. Which of the following is NOT an acceptable use of petty cash?

A) Office supplies
B) Employee salaries
C) Minor repairs
D) Team lunches

5. What is the purpose of a petty cash voucher?

A) To authorize a payment
B) To track petty cash expenses
C) To replenish the petty cash fund
D) All of the above

6. How often should petty cash be reconciled?

A) Daily
B) Weekly
C) Monthly
D) Annually

7. What should be done if petty cash is lost or stolen?

A) Ignore it
B) Report it to management immediately
C) Replace it with personal funds
D) Close the account

8. What is the typical process for replenishing petty cash?

A) Requesting a new fund
B) Providing receipts and documentation
C) Asking the bank for more cash
D) Borrowing from another department

9. What document typically accompanies a petty cash expenditure?

A) Sales invoice
B) Expense report
C) Receipts or vouchers
D) Bank statement

10. Why is it important to keep petty cash secure?

A) To ensure accuracy in accounting
B) To prevent unauthorized access
C) To maintain control over company funds
D) All of the above