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)A balanced system
B)A control system
C)A voucher system
D)An imprest system

Question

Quizplus · Accepted Answer

This system is called the imprest system, which is a type of control system that maintains a constant balance in a petty cash account by replenishing it for the exact amount spent. The fund or cash plus payment slips must total the same amount as the established balance to ensure accuracy and accountability.

Petty Cash Is Accounted for by Maintaining a Constant Balance