MC Qu. 5-92 Which of the following statements incorrectly...

Which of the following statements incorrectly describes an imprest system?

Multiple Choice

• An imprest system helps eliminate the risk that the bank might overpay or underpay an employee.

• An imprest system is an internal control procedure relating to cash payments.

• If the transfers from the payroll account to the employees' checking accounts occur without error, the imprest payroll bank account will equal zero after all employees have been paid.

• The use of an imprest system eliminates the need for bank reconciliations.