Describe the function of an imprest fund
What will be an ideal response?
Answer: An imprest fund has two characteristics: it is set at a fixed amount, such as $100, and it requires vouchers for every disbursement. At all times, the sum of cash plus vouchers should equal the preset fund balance. When the fund balance gets low, the vouchers are presented to accounts payable for replenishment. After accounts payable authorizes this transaction, the cashier then writes a check to restore the petty cash fund to its designated level. As with the supporting documents used for regular purchases, the vouchers used to support replenishment of the petty cash fund should be canceled at the time the fund is restored to its preset level.
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Mr. R. owns 20,000 shares of ABC Corporation stock. The company is planning to issue a stock dividend. Before the dividend Mr. R. owned 10 percent of the outstanding stock, which had a market value of $200,000, or $10 per share
Upon receiving the 10 percent stock dividend the value of his shares is ________. A) $220,000 B) $210,000 C) $200,000 D) $180,000
An oral contract to sell a house is binding if: A) the agreement is witnessed by a member of the clergy
B) there is a tape recording of the agreement. C) the buyer paid the price and received the deed of conveyance. D) the seller is a merchant.