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An imprest petty cash fund would least likely be used to pay for which of the following items?

A) Minor office supplies
B) Monthly interest expense
C) Stamps for small mailings
D) Small contributions to a local charity

1 Answer

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Final answer:

An imprest petty cash fund would least likely be used to pay for monthly interest expense, which is generally handled through formal accounting processes rather than with petty cash intended for minor expenses.

Step-by-step explanation:

An imprest petty cash fund is typically used for managing small, routine expenses within an organization. When evaluating which of the listed items an imprest petty cash fund would least likely be used to pay for, we must understand that the fund is used for incidental or minor office-related expenses.

  • Minor office supplies are a classic use of petty cash.
  • Stamps for small mailings would also be a valid use for petty cash.
  • Small contributions to a local charity can also be covered by petty cash, depending on company policy.

However, monthly interest expense would typically not be paid out of petty cash because interest expenses are usually regular, planned, and often larger in scope than what a petty cash fund is designed to handle. Instead, they would be paid through more formal accounting processes.

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