Question

In reimbursing the petty cash fund, which of the following is true?

a.Cash is debited
b.Petty cash is debited
c.Petty cash is credited
d.Expense accounts are debited

Answer 1

When reimbursing the petty cash fund, petty cash is credited.

Step-by-step explanation:

When reimbursing the petty cash fund, petty cash is credited.

To reimburse the petty cash fund, you would decrease the petty cash account by crediting it. This is because petty cash is an asset and crediting it decreases its value. You would then debit the relevant expense accounts to show the outflow of cash for the expenses paid.

Therefore, the correct answer is: Petty cash is credited.