The imprest system of petty cash accounting refers to:

Question

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The imprest system of petty cash accounting involves periodically replenishing the petty cash fund with enough cash to bring it back to its original balance. This helps to ensure that the fund remains accurate and that any discrepancies are identified and addressed. A responsible person managing the petty cash, using it for small purchases, and making frequent reconciliations may also be part of the imprest system, but the key feature is the periodic replenishment of the fund.

The Imprest System of Petty Cash Accounting Refers To