When a petty cash fund is in use: Multiple Choice Cash is debited when funds are replenished. Petty Cash is credited when funds are replenished. Expenses paid with petty cash are recorded when the fund is replenished. Petty Cash is debited when funds are replenished. Expenses are not recorded.

The correct answer is letter "C": Expenses paid with petty cash are recorded when the fund is replenished.

Explanation:

Petty cash funds are amounts of money companies have handy to take care of small payments. Those payments are too small that do not require a check to be written for their payment. In some companies, each department manages its own petty cash box for expenditures such as unitary office supplies.

For accounting purposes, the transactions incurred with petty cash are recorded only when the petty cash was used in full and a new fund is to be provided.

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explanation:

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