Petty cash fund is defined as the amount of cash on hand that is used in paying small amounts owed instead of writing a check. There are ways which can be employed by companies to control petty cash fund. Reporting and audit and the acceptable use are the ways which companies can employ so as to control petty cash fund. The manager should use the procedure of ensuring cash to be disbursed must be approved. The other procedure is ensuring any cash disbursed is signed by the petty cash custodian(Tulsian 65).
The age of accounts receivable refers to a report that tends to list all unpaid customer invoices as well as unused credit memos. They are determined on the basis of their date ranges. The age of the accounts receivable can be used in determining whether the cash due is collectable or not. An example of the uncollectable receivable is the cost of sales made to customers who will not manage to pay(Tulsian 159).
Tulsian, P C. .Financial Accounting. , 2006. Print.