All purchases from petty cash must be charged to which?

• A. Proper Budget Appropriation
• B. General Fund
• C. Capital Projects
• D. Emergency Fund

Answer: (A)

The key idea is that petty cash expenditures must be charged to the proper budget appropriation to maintain accurate budgeting and financial reporting. Petty cash is used for small, incidental purchases, but every disbursement should be recorded against the specific appropriation that funds the related activity. This keeps actual spending aligned with approved budgets and provides a clear, auditable trail. Charging petty cash to the general fund would blur which budgeted purpose is being funded, and using capital projects or an emergency fund would misclassify routine purchases that don’t fall under those categories. Therefore, the appropriate practice is to assign petty cash purchases to the proper budget appropriation.