chapter 5 - petty cash books Flashcards
1
Q
definition of:
petty cash book
A
used to record low value cash payments
2
Q
definition of:
impress system
A
where fixed amount spent each period is restored so that the petty cashier starts each period with the same amount
3
Q
purpose of petty cash book
A
- it lists the transactions for transferring to ledger accounts
- it acts as a ledger account for petty cash transactions
4
Q
advantages of petty cash book?
A
- reduces num of entries in cash book
- provided training junior member of staff
- chief cashier can concentrate more on important tasks
5
Q
definition of:
analysis columns
A
used to divide the payments into different categories
