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WAEC Financial Accounting 1997 Question 17

Question 17

Petty Cash

Which of the following is an advantage of the imprest system?

  1. A.Making high profits in the business
  2. B.Rewarding the imprest holder
  3. C.Easy preparation of the final accounts
  4. D.Meeting small items of expenditure
  5. E.Enabling the Trial Balance to agree.
Show the answer and explanation

Answer: D (Meeting small items of expenditure)

Explanation

The imprest (petty cash) system gives a fixed float for paying small, frequent expenses conveniently.