budget allotted for the period
actual amount spent
budget allotted plus unspent amount
petty amount of cash
Answer is Right!
Answer is Wrong!
The correct answer is: B. actual amount spent
The imprest system of petty cash book is a system of accounting for small cash expenses. Under this system, a petty cashier is given a fixed amount of cash to cover small expenses. The petty cashier keeps a record of all expenses in a petty cash book. At the end of each period, the petty cashier submits a statement to the accounting department showing the actual amount spent. The accounting department then reimburses the petty cashier for the actual amount spent.
The other options are incorrect because:
- Option A: The budget allotted for the period is not necessarily the amount that will be spent. The actual amount spent may be more or less than the budget.
- Option C: The budget allotted plus unspent amount is not the amount that should be reimbursed to the petty cashier. The petty cashier should only be reimbursed for the actual amount spent.
- Option D: Petty amount of cash is not a specific amount. It can vary depending on the needs of the organization.