O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2021 · Q91 Mark

Ann maintains a petty cash book using the imprest system. Which statement is not correct?

Apetty cash book can be maintained by a junior member of staff.

BAt any time petty cash vouchers plus the petty cash balance are equal to the imprest amount.

CThe chief cashier is not asked continually for small sums of money.

DThe number of entries in the cash book increases because of the large number of small cash payments.

✓ Correct answer

D: The number of entries in the cash book increases because of the large number of small cash payments.

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 9.

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