Petty Cash Is Accounted for by Maintaining a Constant Balance

question 101

Multiple Choice

Petty cash is accounted for by maintaining a constant balance in the petty cash account, supported by the fund (cash plus payment slips) totalling the same amount. What is this system called?

• A)An imprest system
• B)A voucher system
• C)A balanced system
• D)A control system

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Definitions:

Rate of Decrease

A measure of how quickly a quantity is diminishing over time, often expressed as a percentage or a ratio.

Percentage

A portion or share expressed as a fraction of 100, commonly used to compare differences in quantities.

Percentage

A rate, number, or amount in each hundred, represented by the symbol %.

Base

The fundamental component or main ingredient in a mixture, formula, or system.