Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 29)
What is an advantage of using an imprest system?
It increases the risk of fraud
It allows for better control over petty cash.
It requires more staff.
It reduces the amount of paperwork needed.
Explanation
The imprest system offers improved controls by setting a fixed petty cash amount and only replenishing it periodically. This system helps in reducing the chances of fraud, as well as keeping track of the cash.
Comments (0)
