Final answer:
The statement could be true as petty cash on hand can be lesser due to errors in record-keeping, oversight, or theft. Regular reconciliations are crucial for tracking petty cash fund accurately.
Step-by-step explanation:
The statement 'A petty cash on hand amount that is less than a recorded amount' can be true in a business setting. Petty cash is a small amount of cash on hand used for minor business expenditures. The amount of petty cash on hand can become less than the recorded amount for a few reasons, including errors in record-keeping, forgetting to record a transaction, or even theft.
To ensure that the petty cash fund is accurately tracked, regular reconciliations of the on-hand cash to the recorded amount should be carried out. When reconciliation discrepancies arise, it is important to investigate and correct them promptly. Identifying greater and lesser monetary amounts is essential to keeping accurate financial records.