At other times petty cash disbursements will be summarized in rather simple reports, such as the ones illustrated below.

 

Acme Incorporated
Petty Cash Summary of Charges
As at January 12, 2005
Account	GST	Amounts
Supplies Expense	0.70		10.80
Miscellaneous Expense	0.35	5.40
"	0.70	10.80
"	1.40	21.60	37.80
GST Recoverable	3.15		3.15
Total:			$             48.60

Acme Incorporated
Petty Cash Fund Summary of Charges
June 30, 2004
Office Supplies Expense	$20.00
Dental Supplies Expense	25.00
Miscellaneous Expense	5.00
GST Recoverable	3.50
	----------
	$53.50
	======

Expectations Addressed:

The "Internal Control, Financial Analysis, and Decision Making" strand of the BAF3M Ministry of Education Curriculum Guidelines outlines all of the following specific expectations. The expectations addressed by this lesson have been highlighted below.

• Internal Control Procedures:
  • describe the basic elements of an internal control system (e.g., separation of duties, prenumbered documents, rotation of staff);
  • apply appropriate control measures used in accounting for assets (e.g., petty cash procedures, bank reconciliation procedures);
  • describe the role of budgeted financial statements in planning, controlling, and evaluating business results (e.g., difference between budgeted and actual income statements);
  • describe the role and work of an auditor.
• Financial Analysis:
  • explain the importance of current assets and current liabilities when interpreting a balance sheet;
  • analyse a company’s liquidity and solvency by using simple financial ratios (e.g., current ratio, debt ratio) and other financial analysis tools (e.g., comparative statements, trend analysis, common size statements);
  • analyse a company’s profitability by using simple financial ratios (e.g., gross profit percentage, return on equity) and other financial analysis tools (e.g., comparative statements, trend analysis, common size statements).
• Decision Making:
  • describe how accounting information is used by company personnel (e.g., department managers, owners) in making decisions;
  • explain the role of financial analysis in decision making from the standpoint of potential investors (e.g., mutual fund managers, institutional investors, individual investors);
  • describe how accounting information is used by individuals or organizations outside the company (e.g., governments, Ontario Securities Commission, police, forensic accountants) in making decisions.