PRC-1 · Chapter 2 · Question 97 of 100
A petty cashier is assigned an imprest of Rs. 8,000. Under what circumstance would the main cashier reimburse more than Rs. 8,000 to the tin?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Only if management decides to permanently increase the float limit above Rs. 8,000.
Explanation
In normal operations, reimbursement only replaces what was spent up to the float limit. Reimbursement can exceed the original limit only if management formally authorizes a permanent increase in the float size.
More Books of Prime Entry MCQs
- Q99When 'Vortex Traders' prepares its monthly accounts, it needs to record the accrual of staff bonuses earned but not yet paid. Which book…
- Q100The total of the discounts received column in the cash book for May is Rs. 15,000. What is the correct ledger posting for this total?
- Q1Which of the following source documents is primarily used to record entries in the sales day book of 'Nova Retailers'?
- Q2'Zenith Enterprises' purchased inventory on credit from 'Prime Wholesalers'. In which book of prime entry should 'Zenith Enterprises'…
- Q3'Apex Logistics' bought a new delivery truck on credit for Rs. 2.5 million. Which book of prime entry is used to correctly record this…
