41. Assume that at the end of the day, the cash register tape shows a balance of $635. However, the cash drawer has a balance of $650, this difference should be debited to Miscellaneous Expense.
42. Assume that cash sales according to the register file total $705 but the amount of cash in the register is $685. This cash shortage of $20 represents a Miscellaneous Expense.
43. An effective voucher system has limited ability toprevent a dishonest employee from colluding with a dishonest supplier to fraudulently acquire cash payments for goods and services not received.
44. The Petty Cash account is a separate checking account used for small amounts.
45. All disbursements from petty cash should be documented by a petty cash receipt.
46. The journal entry for petty cash reimbursement involves a debit to the appropriate expenses and a credit to Petty Cash.
47. The petty cash fund should be reimbursed when it is nearing zero and at the end of the accounting period when financial statements are prepared.
48. The entry to increase the balance in petty cash from $50 to $75 would be to credit the Petty Cash account in the amount of $25.
49. A bank reconciliation explains any differences between the balance of a checking account on the depositor's records and the balance reported on the bank statement.
50. Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.