What is typically held in petty cash within a business?

Petty cash is a small amount of cash that a business keeps on hand to cover minor or incidental expenses that arise in day-to-day operations. This fund is utilized for various small purchases that do not warrant the use of a company check or credit card, such as buying office supplies, paying for postage, or other small, unforeseen expenses.

Having petty cash allows a business to handle these smaller transactions efficiently without going through the time-consuming process of writing checks or processing expense reimbursements for trivial amounts. The balance in petty cash is typically replenished periodically as expenditures are recorded and receipts collected, ensuring that it remains available for ongoing small expenses.

The other options represent uses of money that involve larger sums or specific strategic allocations, which are not aligned with the typical purpose of a petty cash fund.