JAMB Accounts Principles of Accounts 2018 Paper

Concept:The imprest system is a petty cash control method where a fixed float is restored regularly, making every payment verifiable.Explanation:Under the imprest system, the petty cashier receives a fixed amount at the start of a period.At the end of the period, the petty cashier presents receipts or vouchers for all payments made.The cashier is then reimbursed with exactly the amount spent, bringing the float back to the original fixed amount.Because reimbursement depends on presented vouchers, every item of expenditure must be supported and recorded.This ensures proper accountability and reduces the risk of unapproved or fraudulent payments.Answer:The major advantage is that it ensures proper accountability for every expenditure.Correct option: A.