Petty cash fund is supposed to be replenished?
Correct answer: D. At the end of every accounting period
- A. Every day
- B. Every half year
- C. Every year
- D. At the end of every accounting period
Explanation
Under the imprest system, petty cash is restored to its fixed amount at the end of the accounting period, or when replenishment is otherwise required. Among the given choices, the accounting-period option is the best answer.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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