1 There is no change in the total cash amount on the balance sheet when a petty cash fund is established.

Select one:

True

False

2

Replenishment of the petty cash fund is required at the end of the accounting period to recognize the effects of the petty cash payments on the financial statements.

Select one:

True

False

3

If the bank statement shows a debit memorandum for bank service charges, this unrecorded amount should be added to the company's balance per books when preparing the bank reconciliation.

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True

False

4

Highly liquid, short-term investments with maturities of more than 6 months are classified as "cash equivalents" on the balance sheet.

Select one:

True

False