1. The amount of the imprest is the same from one organization to another.
2. At the end of a fixed period, the petty cashier received a fixed sum of money.
3. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
4. The system is a method by which a measure of control is kept on petty cash expenses.
Which of the following is correct about the imprest system?
-
A.
II and IV -
B.
II, III and IV -
C.
I, II and III -
D.
III and IV
Correct Answer: Option B
Explanation
The imprest system is a form of financial accountingsystem. The most common imprest system is the petty cash system. The base characteristic of animprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.