Chapter 1: Petty Cash Fund

Question 1

What is the first reason for a medial office to maintain a petty cash fund?

Answer 1

For small purchases like cakes for celebrations, greeting cards, break room supplies, etc.

Question 2

What is the first reason for a medial office to maintain a petty cash fund?

Answer 2

For small purchases so they can be deducted as business expenses for tax purposes.

Question 3

What is the first step to establish the petty cash fund?

Answer 3

Begin by writing a check out to “Cash” in the amount of $100.

Question 4

What is the second step to establish the petty cash fund?

Answer 4

Ask that the bank distribute it in small denominations.

Question 5

What should be done when the officee requires cash for incidental expenses such as; postage due on a package?

Answer 5

Prepare a voucher for the amount needed.

Question 6

Why the MA should never remove cash from the fund without a voucher?

Answer 6

Because the office should known when, how and why the money is used for.

Question 7

By keeping track of all petty cash transactions the provider has records to?

Answer 7

Back up tax deductions for those small business expenses.

Question 8

The MA should keep the vouchers in the petty cash box until?

Answer 8

The MA have replenished the fund.

Question 9

Why should the petty cash fund only contain bills in small denominations?

Answer 9

For small payments such as postage stamps, coffee supplies, etc.