Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 7 - No. 48)

How does the imprest system work? (select the best answer)
a) The petty cash is set at a fixed amount and only the money spent is replaced at the end of the period.
b) At the end of the period, the person managing the petty cash will add more cash, or money can be taken out.
c) At the end of the period, the petty cash can not be altered until the next period
d) None of the above.

Explanation

The petty cash is set at a fixed amount and only the money spent is replaced at the end of the period.

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