Imprest :
- (a)Surprise attack by people
- (b)Money used to manage small expenses
- (c)Sudden occurrence of laughter
- (d)Sudden increase in activity
Answer
B
Why
Correct — B, Money used to manage small expenses. An 'imprest' is a fixed cash fund advanced to meet petty or routine expenses and then topped up as it is spent — the everyday 'imprest account' or petty-cash float in accounting.
Why the others are wrong
- (a)Surprise attack by people — A surprise attack is an 'ambush' or 'raid'; 'imprest' has nothing to do with combat.
- (c)Sudden occurrence of laughter — A burst of laughter is a 'guffaw' — an unrelated sense that plays on 'imprest' sounding vaguely like 'impress'.
- (d)Sudden increase in activity — A surge in activity is a 'spurt' or 'upsurge'; imprest is a financial term for a petty-cash fund.
Concept
A word-meaning item on the accounting term 'imprest' — a fixed cash advance for small, recurring expenses — with distractors drawn from unrelated 'sudden' events.
Related PYQs
No directly related past PYQ was found.
Practice
- practice — not a real PYQ
In accounting, an 'imprest system' is used to manage:
- (a)long-term loans
- (b)petty cash
- (c)share capital
- (d)foreign exchange
Answer(b) petty cash — the imprest system replenishes a fixed float for small expenses.
- practice — not a real PYQ
The term 'float' in cash management most nearly means:
- (a)a fixed fund kept for routine spending
- (b)a large capital investment
- (c)an unpaid debt
- (d)a tax refund
Answer(a) a fixed fund kept for routine spending — the same idea as an imprest.