Explanation

Fixed assets are tangible assets that are used in the operation of a business and are expected to have a useful life of more than one year. Examples of fixed assets include:

• Land
• Buildings
• Machinery and equipment
• Vehicles
• Furniture and fixtures
• Computers and software

Explanation

A petty cash fund is typically managed using an imprest system, which is a method of managing small amounts of cash.

Here's how it works:

• A fixed amount of cash is designated for petty cash (e.g. $100).
• The petty cash fund is replenished periodically (e.g. monthly) by withdrawing the exact amount of cash that has been spent, plus any additional amount needed to restore the fund to its original amount.
• All transactions are recorded in a petty cash log or journal.
• The fund is regularly reviewed and reconciled to ensure accuracy and prevent fraud.

Explanation

A petty cash fund is used to manage small, everyday transactions such as:

• Buying office supplies
• Paying for travel expenses
• Purchasing small equipment or materials
• Handling miscellaneous expenses

Explanation

• Tariff refers to a tax or duty imposed by a government on imported goods or services.
• It is a common instrument of trade policy used to protect domestic industries and generate revenue.