Which of the following is correct about the imprest system?

1. The amount of the imprest is the same from one organization to another.

2. At the end of a fixed period, the petty cashier received a fixed sum of money.

3. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.

4. The system is a method by which a measure of control is kept on petty cash expenses.

A. II and IV
B. II, III and IV
C. I, II and III
D. III and IV

Correct Answer:

Option B – II, III and IV

Explanation

Imprest system is a form of a financial accounting system. The most common imprest system is the petty cash system. The base 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.