Petty Cash Account

Petty Cash Account
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Petty Cash Account
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QuickBooks Online Training
Video Tutorial Over QuickBooks Chart Of Accounts - Assets


Petty Cash is a current asset.

Assets are things your company owns. They're usually divided into two groups–current assets and fixed assets:

  • Current assets are generally numbered from 1000 – 1499. These are assets that you can easily turn into cash, such as checking accounts, savings accounts, money market and CD accounts, accounts receivable, and inventory.

    So you might want to use account number 1100 for your company checking account because a checking account is a current asset.

  • Fixed assets are usually numbered from 1500 – 1999. These are items with a minimum cost (for example, 500) that you would have to sell to generate cash. Automobiles, equipment, and land are examples of fixed assets. For example, suppose last year your company bought a new computer system for 1,100. Since the cost of the system was more than 500, the purchase was entered to an asset account rather than to an expense account. Consult your accountant or tax preparer to determine the actual minimum cost you should use to determine fixed assets.

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