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Accounting and finance
Petty cash is a small amount of money that businesses keep on hand to cover minor expenses that arise unexpectedly. This cash is used for transactions that are too small to warrant writing a check or using a credit card. Petty Cash purpose is to facilitate small, immediate purchases such as office supplies, minor repairs, or employee reimbursements for small amounts. To provide a convenient way to handle small, everyday expenses without the need for complex accounting procedures. A fixed amount of money is allocated to a petty cash fund, which is managed by a custodian. When the petty cash fund is low, the custodian submits receipts for the expenditures to the accounting department, which then replenishes the fund. Each transaction made from the petty cash fund is recorded in a petty cash log, noting the date, amount, purpose, and person responsible for the expenditure.
A financial statement is a formal record of the financial activities and position of a business, individual, or other entity. It provides an overview of the financial condition and performance of the entity over a specific period. It has 2 types i.e Balance Sheet, Income Statement (Profit and Loss Statement, Cash Flow Statement, Statement of Changes in Equity
