PRC-1 · Chapter 2 · Question 48 of 100
What is the primary administrative and control advantage of using the imprest system for petty cash?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It restricts the cash available to a fixed limit, and reimbursement strictly matches documented expenses.
Explanation
The imprest system sets a maximum float limit, preventing excessive unmonitored spending. Because reimbursement requires matching vouchers, it inherently forces strict accountability and minimizes the risk of fraud.
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