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6. If employees are bonded A) it means that they are not allowed to handle cash. B) they have worked for the company for at
6. If employees are bonded A) it means that they are not allowed to handle cash. B) they have worked for the company for at least 10 years. C) they have been insured against misappropriation of assets. D) it is impossible for them to steal from the company. 7. A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $94. The entry to replenish the fund would A) credit Cash Over and Short for $2. B) credit Miscellaneous Revenue for $2. C) debit Cash Over and Short for $2. D) debit Miscellaneous Expense for $2. 8. A petty cash fund is generally established in order to A) pay for all merchandise purchased on account. B) pay employees' wages. C) make loans internally to employees. D) pay relatively small expenditures. 9. A $100 petty cash fund has cash of $13 and receipts of $84. The journal entry to replenish the account would include a credit to A) Cash for $87. B) Petty Cash for $87. C) Cash Over and Short for $3. D) Cash for $84. 10. A company maintains the asset account, Cash in Bank, on its books, while the bank maintains a reciprocal account which is A) a contra-asset account. B) a liability account. C) also an asset account. D) an owner's equity account. 11. A check returned by the bank marked "NSF" means A) no service fee. B) no signature found. C) not satisfactorily filled-out. D) not sufficient funds
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