Question

on june 1, fab salad dressings creates a petty cash fund with an imprest balance of $500. during june, ruth mangan, the fund custodian, signs the following petty cash tickets. on june 30, prior to replenishment, the fund contains these tickets plus cash of $190. the accounts affected by petty cash payments are supplies, travel expense, delivery expense, entertainment expense, and merchandise inventory. requirement 1. explain the characteristics and the internal - control features of an imprest fund. an imprest fund has balance at all times, which equals the sum of plus the that support payments from the fund. the internal - control feature of an imprest fund is that it the amount of money for which the fund custodian is responsible. petty cash tickets petty cash ticket number item amount 101 supplies $40 102 cab fare for executive 25 103 delivery of package across town 20 104 business dinner 95 105 merchandise inventory 140

Explanation:

An imprest fund has a fixed balance at all times. This balance equals the sum of the remaining cash plus the petty - cash tickets (which are evidence of payments) that support payments from the fund. The internal control feature is that it clearly defines the amount of money for which the fund custodian is responsible, as the total of cash and ticket amounts should always equal the imprest amount.

Answer:

Fixed; Remaining cash; Petty - cash tickets; Clearly defines