For which of these purposes may NOT petty cash be used?

For which of these purposes may NOT petty cash be used?
A . Purchasing office sundries
B . Advances on staff salaries
C . Paying excess delivery charges
D . Paying cab fares for staff on office business

View Answer

Answer: B

Explanation:

Petty cash is the sum of money held in the office to meet immediate office running needs. It should not be used for staff loans or advances on salary; borrowing from petty cash without authorization, even if there is a genuine intention to return the borrowed sum, could be classified as theft.