Petty cash balance is a/an___________?
Correct answer: A. Assets
- A. Assets
- B. Expenditure
- C. Liability
- D. None
Explanation
Petty cash is a small amount of cash held by the business for routine minor payments, so its balance is an asset. The payments made from it are expenses, but the remaining balance is not expenditure.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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