Accounting Multiple Choice Question – 28 January 2024

Which of the following best explains the imprest (set amount) system of petty cash?

Select ONE answer:

1. Each month an equal amount of cash is transferred into petty cash
2. The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float
3. Petty cash must be kept under lock and key
4. The petty cash total must never fall below the imprest amount

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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