120.Indicate whether each of the following items regarding petty cash is true or false._____ a) The establishment of a petty cash fund is an asset exchange transaction._____ b) The replenishment of a...

120.Indicate whether each of the following items regarding petty cash is true or false.


_____ a) The establishment of a petty cash fund is an asset exchange transaction.
_____ b) The replenishment of a petty cash fund is an asset source transaction.
_____ c) At any time, the total of the petty cash vouchers plus the remaining coins and currency should equal the balance of the Petty Cash ledger account.
_____ d) If a shortage occurs, a credit is entered to the Cash Short and Over account.
_____ e) There is no journal entry made in the accounting records at the time when petty cash funds are disbursed.

121.Indicate whether each of the following statements about the auditor's role in financial accounting is true or false.


_____ a) The proper conduct of an audit guarantees the accuracy of all figures on the financial statements.
_____ b) The financial audit is a detailed review of a company's financial statements and documents.
_____ c) The primary responsibility of the independent accounting firm is to the audit client.
_____ d) The most favorable type of audit report is called a qualified opinion.
_____ e) The ultimate responsibility for the financial statements lies with management of the company rather than the independent accounting firm.