Non-imprest petty cash system is best described as what?

• A. A fixed amount of cash is withdrawn from the bank at regular intervals to be placed in the petty cash tin
• B. Petty cash balance is kept at zero
• C. Petty cash is replenished after every payment
• D. Imprest level is the annual budget

Answer: (A)

The idea being tested is how a non-imprest petty cash fund is established and controlled. The best description is that a fixed sum is withdrawn from the bank at regular intervals and placed into the petty cash tin, so you start each period with a known amount to spend from. This fixed float makes it easy to monitor and reconcile: you know exactly how much cash should be in the tin and you top it up to that same amount when needed, keeping control over the petty cash value.

This description fits because it emphasizes a defined starting amount for the petty cash, which is the core way this approach is managed. The other options describe scenarios that don’t match non-imprest: keeping the balance at zero would eliminate the fund, replenishing after every payment describes an imprest arrangement, and equating the imprest level with an annual budget is not how petty cash levels are typically handled.