Accounting Online Program Certification Practice Test

How much does Amara need to reinstate her imprest balance at the end of April?

1. £40

2. £44

3. £46

4. £50

The correct answer is: £46

To determine how much Amara needs to reinstate her imprest balance at the end of April, we first need to understand what an imprest system is. An imprest system is a financial management tool where a fixed amount of money is set aside for small expenses. At the end of a period, the amount spent is accounted for and the fund is replenished back to its original fixed amount. In this scenario, if Amara needs to reinstate her balance to a specified total, we would analyze the amount spent during April along with the original imprest balance. The difference between the two figures will indicate how much she needs to add to return to the original amount. Assuming the original imprest amount was adequately calculated and based on her expenditures for the month, if the required reinstatement amount is £46, that would mean her expenses over the month came to a total of £4 (from the initial amount which was likely £50). Therefore, to return to her fixed amount of £50, she needs to add £46 back into the fund. This understanding about the nature of imprest systems, how they function, and the math behind it leads to the conclusion that the correct answer regarding how much Amara must reinstate her balance