Petty Cash Imprest System

A Petty Cash Fund is set up

• as a backup to the Cash at Bank account

• so that when the cash registger is low in funds, the employee can take money from the Petty Cash Fund

• in order to make payments that are too small to need an individual cheque to be written

• as a form of control over the cash at bank account

The person who is responsible for the Petty Cash is called the

• Petty Cash Voucher

• Administrative Assistant

• Perry Cash Assistant

• Petty Cashier

The Petty Cash Voucher is

• Used instead of a cheque for small payments

• The documentary evidence that a petty cash payment has been made

• Is the document taken and presented for payment for small amounts ie milk

• A numbered document used to record the balance of the Petty Cash Fund

The Petty Cash Book is the summary of the Petty Cash Vouchers.

• True

• False

The method for controlling and recording the petty cash is called the

• Petty Cash Book

• Cash Payments Journal

• Cash Book System

• Imprest System

The three steps involved in the Imprest System ar:

• Establish the Fund, Record the Petty Cash Payments and Reimburse the Fund

• Establish the Fund, Prepare Voucher, Reimburse the Fund

• Write the Cheque, Prepare the Vouchers, Record the Petty Cash in the Petty Cash Book

• Establish the Fund, Record the Petty Cash Transaction in the Petty Cash Book, Repay the employee for the costs.

The Petty Cash Voucher is a prenumbered source document.

• True

• False

The Petty Cash Book

• Records the Receipts for items purchased

• Summaries the Petty Cash Vouchers

• Summarises the Petty Cash Imprest System

• Records the cheques for small payments

The Petty Cash Book is balanced

• Weekly

• Fortnightly

• Monthly

• Any of the above

A reimbursement cheque is used to replenish the fund back to its original Pett Cash amount?

• True

• False