Which of the following statements about the petty cash fund is true?

A petty cash fund is a small amount of cash that a business keeps on hand to pay for minor expenses, such as office supplies or travel reimbursements. The statement that the petty cash fund has a normal debit balance is accurate because, in accounting, asset accounts generally have a debit balance. When cash is set aside for the petty cash fund, it is recorded as an increase in the petty cash asset, which means it carries a debit balance.

Maintaining a petty cash fund is meant to facilitate quick access to cash for small, incidental purchases without the need for writing checks or making credit card payments. The debit balance is important because it reflects the amount of cash that is available within the fund, signifying the company's resources.

Other options present misconceptions. For instance, petty cash is generally used for small purchases but is not limited solely to that – hence, it is not strictly true to say it can only be used for such purposes. Additionally, while replenishing a petty cash fund is common, it is not limited to any particular timing and depends instead on the amount spent and the company's policies. Lastly, considering petty cash as a liability is inaccurate because it represents an asset that the company holds, not a liability it owes.