When petty cash on hand equals the recorded amount, there is no petty cash shortage.

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Multiple Choice

When petty cash on hand equals the recorded amount, there is no petty cash shortage.

Explanation:
When you reconcile petty cash, you compare the cash on hand with the amount recorded in the petty cash ledger. A shortage occurs only if the actual cash on hand is less than what's recorded. If the two amounts match exactly, the difference is zero, so there is no shortage. That direct result is best captured by the option stating there is no shortage. Replenishment timing doesn’t affect this moment-of-count conclusion, since the count itself shows zero variance.

When you reconcile petty cash, you compare the cash on hand with the amount recorded in the petty cash ledger. A shortage occurs only if the actual cash on hand is less than what's recorded. If the two amounts match exactly, the difference is zero, so there is no shortage. That direct result is best captured by the option stating there is no shortage. Replenishment timing doesn’t affect this moment-of-count conclusion, since the count itself shows zero variance.

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