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WAEC Financial Accounting 2008 Question 38

Question 38

Petty Cash

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

  1. A.Rewarding the imprest holder
  2. B.Reducing the burden of petty cashier
  3. C.Reimbursing the petty cashier regularly
  4. D.Reducing the postings for small expenses into the main ledger.
Show the answer and explanation

Answer: D (Reducing the postings for small expenses into the main ledger.)

Explanation

Petty expenses are posted in column totals, reducing ledger postings.