Key Terms: Chapter 9

Question 1

Petty Cash Book?

Answer 1

Records low-value cash payments for small purchases and expenses;

May combine the roles of the book of prime entry for low-value cash payments

& the double entry account for petty cash.

Question 2

Petty Cashier?

Answer 2

The person responsible for the petty cash book

Question 3

Petty cash voucher?

Answer 3

Financial Document against which payments are made out of petty cash.

Question 4

Imprest method

Answer 4

Where the money held in the petty cash float is restored to the same amount for the beginning of each week / month.

Question 5

Petty Cash Float

Answer 5

Amount of money held at any one time by the petty cashier.

Question 6

Analysis Columns

Answer 6

Used in Petty Cash Book to record expense payments under various headings to suit the circumstances of the business.

Question 7

Petty Cash Control Accounts

Answer 7

Double-Entry account in General Ledger used when petty cash book is treated solely ass the book of prime entry;

It shows the total payments made by the petty cashier during the week / month

& records receipts from bank account together with the opening and closing balances.