The most common imprest system is the ________ system?
Correct answer: D. Petty cash
- A. Discount
- B. Cash book
- C. Cash receipt
- D. Petty cash
Explanation
The petty cash system is the most common imprest system because a fixed amount is advanced for small expenses and restored periodically to its original level. The other options describe cash-book types or discounts, not an imprest fund.
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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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