WAEC Accounting 2014 Objective — Question 3

Question 3 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.

In the operation of an imprest system of petty cash, the

A. petty cashier pays all expenses
B. petty cashier pays money to the accountant
C. petty cashier regularly begins each period with the same amount of moneyCorrect
D. main cashier accounts to the petty cashier for some expenses made by him

Explanation

An imprest is a fixed arrangement to cover petty expenses; it is reimbursed periodically to restore the same opening balance each period.

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