A Wauchula petty-cash fund is authorized at $300. Receipts on hand total $89, and cash counted is $136. What replenishment amount is needed to restore the fund?
Correct Answer
C) $164
To restore an imprest petty-cash fund, reimburse the amount needed to bring cash back to the authorized fund balance.
Why This Is the Correct Answer
To restore an imprest petty-cash fund, reimburse the amount needed to bring cash back to the authorized fund balance.
Why the Other Options Are Wrong
Option A: $347
$347 is above the supported result for petty cash control; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $89
$89 is below the supported result for petty cash control; it likely uses the wrong base, period, or account bucket.
Option D: $136
$136 is below the supported result for petty cash control; it likely uses the wrong base, period, or account bucket.
Memory Technique
Bookkeeper Reconciles money test: bucket before math for petty cash.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Business Administration, Petty Cash Controls; verify the record, approval, or control duty before selecting the answer.
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