Explain the Characteristics and Internal Control Features of an Imprest

question 142

Essay

Explain the characteristics and internal control features of an imprest fund.

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Definitions:

Equity Securities

Financial assets that represent ownership interest in a company, such as stocks.

Debt Securities

represent money that is borrowed and must be repaid, with terms that define the amount borrowed, interest rate, and maturity date, commonly issued in the form of bonds, notes, or bills.

Bonds

Debt securities issued by corporations or governments to raise funds, whereby the issuer owes the holders a debt and is obliged to pay interest.

De Jure Corporation

A corporation that is fully in compliance with all state laws and therefore officially recognized as a legal entity.