Money used mostly for postage due and small amounts of the office supplies is known as?

• A. Petty funds
• B. Cash on hand
• C. Operating cash
• D. Petty cash

Answer: (D)

Petty cash is a small amount of cash kept on hand to pay for minor, routine expenses such as postage and small office supplies. Having a dedicated petty cash fund allows staff to make quick purchases without writing a check, while receipts and a petty cash log help track how the money is spent. The fund is usually set to a fixed amount and replenished when the total spent nears that level, with a designated custodian who disburses funds and reconciles the fund regularly. Other terms like cash on hand refer to all cash available, not a designated petty fund, and “operating cash” isn’t a standard label for this purpose. So the term that fits money used mostly for postage due and small office supplies is petty cash.