Question：A simple control which an enterprise can usefully employ is referred to as the 'imprest system'.
To which of the following accounting areas is the control applicable?
A. Petty cash control and reimbursement.
B. Bank control and reconcilliation.
C. Wages control and reconcilliation.
D. Inventory control.
The correct answer is:Petty cash control and reimbursement.
The imprest system is a control over petty cash expenditure. The term 'imprest' means a fixed sum advance. Expenditure incurred by the recipient of the advance over a particular period (which may be fixed) is independently checked before any reimbursement is made by vouching the expenditure, which should be supported by appropriate documentary evidence.