Unformatted text preview: EOC #17 Chapter 16-Cash and Investments 16-2 A general cash account is the principal cash account for most entities. The major source of cash receipts for this account is the revenue process, and the major sources of cash disbursements are the purchasing and human resource management processes. An imprest bank account contains a stipulated amount of money, and the account is used for limited purposes. Imprest accounts are frequently used for disbursing payroll and dividend checks. Companies that have multiple locations are likely to have branch accounts. Such accounts provide the branch with the ability to pay local expenses and to maintain banking relations with the local community. An imprest account serves as a clearing account for similar types of checks. By separating similar types of checks, the entity facilitates the disbursement of cash while maintaining adequate control over cash. Use of imprest accounts also minimizes the time necessary to reconcile the general cash account.necessary to reconcile the general cash account....
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- Spring '11
- Revenue, Payment, bank account, general cash account