Y10 Accounting - C5 Petty Cash Books

What is the primary purpose of a petty cash book?

• To record high-value cash payments

• To list transactions for ledger accounts

• To manage bank accounts

• To track employee salaries

Who typically maintains the petty cash book?

• The chief accountant

• The petty cashier

• The financial auditor

• The business owner

What does the imprest system of petty cash ensure?

• The petty cash book is not audited

• The amount spent is restored each period

• The petty cashier can spend unlimited amounts

• The petty cash is only used for emergencies

What is one benefit of using the imprest system?

• It helps to reduce fraud

• It increases the amount of petty cash

• It allows for unlimited spending

• It eliminates the need for vouchers

What type of expenses are recorded in the petty cash book?

• Loan repayments

• Investment purchases

• High-value transactions

• Low-value cash payments

What is included in a petty cash voucher?

• The date and purpose of spending

• The bank account number

• The total cash balance

• The employee's salary

What is the first step during the preparation of a petty cash book?

• Add up the total paid column

• Credit the money paid

• Debit the money received

• Balance the total received

What does the petty cash book resemble?

• A bank statement

• A financial report

• A ledger account

• A tax return

What is the purpose of analysis columns in a petty cash book?

• To record the total cash balance

• To divide payments into different categories

• To manage bank transactions

• To track employee expenses

What should be done at the end of the period in petty cash book preparation?

• Restore the imprest amount

• Record new vouchers

• Add up the total paid column

• Increase the petty cash limit