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JAMB Principles of Accounts 2014 Question 11

Question 11

Petty Cash

The major advantage of an imprest system is that it

  1. A.ensures a proper accountability for every expenditure.
  2. B.trains the young accountants in the preparation for greater responsibilities.
  3. C.relieves the chief cashier of the numerous petty cash payments.
  4. D.serves as an analysis column for every expenses.
Show the answer and explanation

Answer: C (relieves the chief cashier of the numerous petty cash payments.)

Explanation

Small payments are handled by the petty cashier, so the chief cashier is free for bigger work.