Which of the below is correct about the imprest system?

i. The amount of the imprest is the same from one organization to another
ii. At the end of a fixed period, the petty cashier received a fixed sum of money.
iii. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv. The system is a method by which a measure of control is kept on petty cash expenses.

A. i, ii and iii
B. i, iii and iv
C. i, ii and iv
D. iii and iv

Correct Answer:

Option C – i, ii and iv

Explanation

The basic characteristic of an imprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.