Which of the Following Statements Incorrectly Describes an Imprest System

question 157

Multiple Choice

Which of the following statements incorrectly describes an imprest system?

• A)An imprest system is an internal control procedure relating to cash payments.
• B)An imprest system helps eliminate the risk that the bank might overpay or underpay an employee.
• C)The use of an imprest system eliminates the need for bank reconciliations.
• D)If the transfers from the payroll account to the employees' checking accounts occur without error,the imprest payroll bank account will equal zero after all employees have been paid.

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Definitions:

Material Effect

An impact significant enough to influence a decision, action, or the outcome of a situation, often used in legal and financial contexts.

Misrepresentation

The act of providing false, misleading, or inaccurate information with the intent to deceive or mislead.

Mistake

In legal terms, an erroneous belief, at contracting, that certain facts are true.

Fraudulent Misrepresentation

The act of intentionally making false statements to induce another party into a contract, resulting in harm or loss.