Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry. a. Fund amount is being reduced
b. Fund amount is being increased
c. Fund is being eliminated
d. Fund is being established

A. Fund amount is being reduced

C. Fund is being eliminated

Explanation:

A petty cash fund is typically used in recording small payments. The events which can cause a Petty Cash account to be credited in a journal entry include:

• Fund amount is being reduced

• Fund is being eliminated

Therefore, the correct options are A and C.

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