WAEC Accounting 2014 Paper

Concept:The imprest system of petty cash maintains a fixed opening float which is restored regularly after expenses are recorded.Explanation:In an imprest system, the petty cashier is given a fixed sum of money at the beginning of every period.This fixed sum is known as the imprest amount or petty cash float.During the period, the petty cashier makes small payments for minor operating expenses from this float.At the end of the period, the petty cashier presents the expenses made to the main cashier for reimbursement.The main cashier then reimburses exactly the amount spent, so the float is restored to its original fixed amount.Therefore, the petty cashier regularly begins each period with the same amount of money.Options A and B are incorrect because the petty cashier only pays small expenses and does not pay money to the accountant.Option D is also incorrect because the petty cashier, not the main cashier, accounts for the expenses incurred.Answer:C. The petty cashier regularly begins each period with the same amount of money.