more Flashcards

(7 cards)

1
Q

What is the purpose of petty cash?

A

The purpose of petty cash is to pay minor expenses where the use of a cheque is impractical.

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2
Q

Who is likely to be responsible for petty cash?

A

The petty cash voucher is provided by the cashier or accounting clerk.

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3
Q

What precautions should be taken to ensure the safety of petty cash?

A

The precautions are that the petty cash is in a lockable metal cash box, and when not being used, the cash box will be deposited in a lockable drawer or in the company safe.

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4
Q

Why is it necessary to keep petty cash records?

A

It is important because some records have to be maintained to avoid the possibility of fraudulent use.

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5
Q

What is a petty cash voucher?

A

A petty cash voucher is usually a small form that is used to document a disbursement from a petty cash fund.

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6
Q

Explain the imprest system of keeping petty cash records.

A

The imprest system is a simple method of recording petty cash accounts, thereby maintaining a cash float.

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7
Q

If you were asked to take over responsibility for petty cash from someone else, how would you ensure that the accounts were correct before taking them over?

A

To ensure the petty cash accounts are correct when taking over responsibility, I would first review existing records, perform a count, verify reconciliation to ensure the records are accurate, and obtain formal handover acknowledgement to ensure accountability and a smooth transition.

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