Petty Cash Management Quiz

The document showing how petty cash was spent is submitted to request:

• Salary

• Allowance

• Reimbursement

• Tax relief

The analysis column labeled “Stationery” will typically include which of the following?

• Office pens

• Factory tools

• Fuel

• Repairs

What is the term used when a petty cashier returns a record of expenses for review?

• Retirement of imprest

• Reconciliation

• Loan adjustment

• Balancing

The imprest system of petty cash ensures that:

• Cash is increased monthly

• Expenses are eliminated

• Petty cash is fixed and replaced after use

• Accounts are frozen after each month

What is the primary reason for keeping a separate petty cash book?

• To duplicate records

• To increase accounting workload

• To reduce entries in the main cash book

• To confuse petty staff

How frequently is a petty cash book usually balanced?

• Once a year

• Weekly or monthly

• Daily

• It is never balanced

Petty cash is best used for:

• Buying land

• Long-term projects

• Major investments

• Minor expenses like postage and transport

Which of the following is not considered part of the petty cash expenditure process?

• Buying stamps

• Recording refreshments

• Paying rent

• Buying envelopes

Who typically authorizes the payment of petty cash expenses in an imprest system?

• Petty cashier

• Main cashier

• Auditor

• Manager

Spending petty cash on various minor purchases is referred to as:

• Adjustment

• Imprest issue

• Revaluation

• Retirement of imprest