Under the imprest system of petty cash, the petty cashier is normally reimbursed with an amount equal to which figure?
Correct answer: C. The amount spent during the period
- A. The opening petty cash balance
- B. The total cash sales of the period
- C. The amount spent during the period
- D. The closing bank balance
Explanation
Under the imprest system, the petty cashier receives enough money to restore the float to its fixed amount. Therefore, the reimbursement usually equals the total petty cash expenditure during the period.
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About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
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