Requirement $1.$ Explain the characteristics and the internal control features of an imprest fund.

An imprest fund has

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balance at all$$ times, which equals the sum of

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accounts receivable

cash in the bank

cash in the fund

deposits in transit

plus the

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check stubs

credit memos

total of the tickets

that support payments from the fund. The internal control feature of an imprest fund is that it

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clearly debits

clearly identifies

decreases

increases

the amount of money for which the fund custodian is responsible.