Asked by Travis Badger on May 05, 2024
Verified
The petty cash fund eliminates the need for a bank checking account.
Petty Cash Fund
A petty cash fund is a small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.
Bank Checking Account
An account at a bank or financial institution that allows for easy deposit and withdrawal of funds, typically used for daily transactions.
- Recognize the critical importance of petty cash funds within cash management strategies.
Verified Answer
AM
Arrielle Mary Faith NengascaMay 10, 2024
Final Answer :
False
Explanation :
The petty cash fund is a small amount of cash kept on hand for minor expenses. It does not eliminate the need for a bank checking account, which is still necessary for larger transactions and managing company finances.
Learning Objectives
- Recognize the critical importance of petty cash funds within cash management strategies.