Accounting Online Program Certification Practice Test 2026 - Free Certification Practice Questions and Study Guide

The imprest system of petty cash control is designed to maintain a set balance of cash that is replenished when it is spent. This system ensures that the total amount of petty cash on hand, plus the petty cash vouchers (which represent the amount spent), consistently equals the original imprest amount. This means that if the cash in the box combined with the petty cash vouchers matches the fixed imprest amount, it confirms that all expenses have been properly accounted for and documented through vouchers.

This method provides a clear and organized way to track small business expenses and ensures that there is always a fixed amount available. If the petty cash equals the petty cash vouchers, it illustrates that the financial records are in alignment with actual cash on hand, thereby enhancing oversight and accountability for these small expenditures.