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PRC-1 · Chapter 2 · Question 48 of 100

What is the primary administrative and control advantage of using the imprest system for petty cash?

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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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