Petty cash is accounted for by maintaining a constant balance in the petty cash account, supported by the fund (cash plus payment slips)totalling the same amount. What is this system called?
A)An imprest system
B)A voucher system
C)A balanced system
D)A control system

Question

Quizplus · Accepted Answer

An imprest system is a method of managing petty cash where a fixed amount is maintained, and the fund is replenished to this fixed amount after expenditures are made, ensuring the total of cash and payment slips always equals the original amount.

Petty Cash Is Accounted for by Maintaining a Constant Balance