Which of the Following Statements Incorrectly Describes an Imprest System

Multiple Choice

Which of the following statements incorrectly describes an imprest system?

A) An imprest system is an internal control procedure relating to cash payments.
B) An imprest system helps eliminate the risk that the bank might overpay or underpay an employee.
C) The use of an imprest system eliminates the need for bank reconciliations.
D) 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.