Asked by Michael Culham on Jun 17, 2024
Verified
Businesses that have several bank accounts, petty cash, and cash on hand would maintain a separate ledger account for each type of cash.
Petty Cash
A small amount of cash on hand used for minor or incidental expenses.
Ledger Account
A set of accounts in a ledger that provides a record of financial transactions categorized by account type.
- Recognize the importance of separate ledger accounts for different forms of cash.
Verified Answer
AM
Alondra MendezJun 23, 2024
Final Answer :
True
Explanation :
Businesses typically maintain separate ledger accounts for each type of cash to better manage and track their cash flow. This helps in accurately recording and reconciling cash transactions and preventing errors or discrepancies.
Learning Objectives
- Recognize the importance of separate ledger accounts for different forms of cash.