ICAEW ARF · Chapter 6 · Question 10 of 11
Which of the following describes an imprest system for petty cash?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A fixed float is held, and it is topped up periodically by the total of the vouchers for amounts spent
Explanation
Under an imprest system, cash plus vouchers should always equal the fixed float, so differences can be easily detected. The float is replenished by the value of vouchers presented, which supports the authorisation and recording of petty cash expenditure. Top-ups without vouchers or annual recording would make it impossible to control.
More Controls over payroll, inventory and cash MCQs
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- Q4Which of the following is a physical control over inventory?
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