i. The amount of the impurest is the same from one organization to another.
ii. At the end of a fixed period, the petty cashier received a fixed sum of money.
iii. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv. The system is a method by which a measure of control is kept on petty cash expenses.
Which of the following is correct about the impurest system?
II and IV
II, III and IV
I, II and III
III and IV
Correct answer is B
The impurest system is a form of financial accounting system. The most common impurest system is the petty cash system. The base characteristic of an impurest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.