An Imprest System Is a Process That Controls the Amount

question 7

True/False

An imprest system is a process that controls the amount paid to others by limiting the total amount of money available for making payments to others.

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Definitions:

Amount Owed

The total sum of money that is due for payment to a lender or creditor.

Operating Cycle

The average period of time between the acquisition of materials or services and the final cash realization from those activities in a company.

Accounts Receivable Period

Accounts Receivable Period is the average number of days it takes for a company to collect payment from its customers after a sale has been made.

Cash Cycle

The period of time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.