A difference between an imprest payroll account and petty cash is petty cash is:
A)not held at the bank.
B)a special account at the company's bank.
C)used for payroll.
D)better controlled.

Question

Quizplus · Accepted Answer

An imprest system is a process that controls the amount paid to others by limiting the total amount of money available for making payments to others.A petty cash fund is a system used to reimburse employees for expenditures they have made on behalf of the organization.Like an imprest bank account,a petty cash fund acts as a control by establishing a limited amount of cash to use for specific types of expenses.The main difference between the two is that rather than transfer funds from a general bank account to another special account at the bank,the company removes cash from its general bank account to hold at its premises in a locked cash box.

A Difference Between an Imprest Payroll Account and Petty Cash