Consider the following events: a petty cash fund of $200 was established on april 1, year 1. employees were reimbursed when they presented petty cash vouchers to the petty cash custodian. on april 30, year 1, the petty cash fund contained vouchers totaling $196.50 plus $2.20 of currency. required answer the following questions: a. how did the establishment of the petty cash fund affect (increase, decrease, or have no effect on) total assets? increase decrease no effect

No effect

Explanation:

As with opening of petty cash fund, there is an exchange in the form of asset.

The free cash is now divided in two parts, cash and petty cash.

Both are assets and the closing balance of cash in balance sheet is aggregate of free cash and petty cash.

Therefore, there is no impact in the total assets as now free cash is petty cash which is later added to free cash.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: