Which type of cash advance is authorized for salaries and petty cash operating expenses?

Which type of cash advance is authorized for salaries and petty cash operating expenses?

• A. Special cash advance
• B. Regular cash advance
• C. Emergency cash advance
• D. Temporary cash advance

Answer: (B)

The correct answer is Regular cash advance, which is typically used for ongoing operational needs such as salaries and petty cash expenses. This type of cash advance is designed to provide a predictable funding source for regular, necessary expenditures that a local government or organization incurs as part of its daily functions. Regular cash advances are generally easier to manage and account for, as they align with the planned budgets and funding schedules, ensuring that salary disbursements and petty cash needs are met without disruptions. This reliability is crucial for maintaining smooth operations within any organization. In contrast, other types of cash advances serve different purposes. Special cash advances might be authorized for distinct, often non-recurring expenditures, while emergency cash advances are intended for urgent, unforeseen financial needs that require immediate attention. Temporary cash advances are typically used for short-term or brief projects, rather than for usual salary and ongoing operational expenses.

The correct answer is Regular cash advance, which is typically used for ongoing operational needs such as salaries and petty cash expenses. This type of cash advance is designed to provide a predictable funding source for regular, necessary expenditures that a local government or organization incurs as part of its daily functions.

Regular cash advances are generally easier to manage and account for, as they align with the planned budgets and funding schedules, ensuring that salary disbursements and petty cash needs are met without disruptions. This reliability is crucial for maintaining smooth operations within any organization.

In contrast, other types of cash advances serve different purposes. Special cash advances might be authorized for distinct, often non-recurring expenditures, while emergency cash advances are intended for urgent, unforeseen financial needs that require immediate attention. Temporary cash advances are typically used for short-term or brief projects, rather than for usual salary and ongoing operational expenses.