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Which statement about a Petty Cash Book maintained under the imprest system is correct?

Under the imprest system, the petty cashier receives a fixed float and is reimbursed at period end the exact amount spent, restoring the original float. The imprest amount stays fixed, and the petty cashier handles small expenses rather than customer receipts.

  1. AThe petty cashier keeps all cash received from customers
  2. BThe petty cashier is reimbursed at the end of the period the exact amount spent, restoring the imprestCorrect
  3. COnly the head cashier records the expenses
  4. DThe imprest amount changes every period to match expenses

Explanation

Under the imprest system a fixed float is given to the petty cashier. At period end the amount actually spent is reimbursed, which restores the float to its original amount. Customer receipts are not handled by the petty cashier, and the imprest stays fixed.

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