Question

A way to account for petty cash by maintaining a constant balance in the petty cash account and which at any time requires that cash plus petty cash tickets must total the amount allocated to the petty cash​ fund, is known as the​ ________.

Answer 1

Imprest system

Step-by-step explanation:

An imprest system is an accounting system where a fixed amount is reserved which needs to be replenished when required after a period of time. The source of the replenishment will be from another source for example from a bank account.

The imprest system only allows a replenishment of the amount that has been spent. For example of a petty cash account has $500 and $300 was spent that month, at the end of the month the $300 spent will be replaced.