Question

What is a petty cash float?

Answer 1

Payments are for the most part dealt with by petty cash, under an imprest framework whereby a measure of ‘float’ is fixed. This is the maximum measure of money that can be held whenever. The measure of repayment is equivalent to the costs paid through petty cash since the period of the last repayment.

Also see:

• MCQs on Journal Entries
• Types of Cash Book