Which of the following control plans transfers the exact amount of funds necessary to reimburse the account for payroll checks cashed?
A) approve attendance time data and job time data
B) use payroll clearing account
C) independent paycheck distribution
D) imprest payroll bank account

Question

Quizplus · Accepted Answer

An imprest payroll bank account is a type of control plan that ensures that the exact amount of funds needed to reimburse the account for payroll checks cashed is transferred. This account is funded at the beginning of each pay period with the total estimated amount of payroll checks. As checks are cashed, funds are transferred from the imprest payroll account to the regular bank account, ensuring that the balance in the imprest account remains at a constant level. This helps to prevent misappropriation of funds and ensures that the exact amount required for payroll is always available.

Which of the Following Control Plans Transfers the Exact Amount