Asked by Annie Vatterott on Jun 16, 2024
Verified
A voucher system establishes procedures for verifying,approving,and recording liabilities for eventual cash payment.
Voucher System
An accounting system used to control and monitor disbursements by ensuring that all cash disbursements are properly authorized and documented.
Liabilities
Obligations that a company owes to others, including loans, accounts payable, mortgages, and other debts.
- Comprehend the objective and operation of a voucher system in overseeing cash payouts.
Verified Answer
RR
Russell RoederJun 20, 2024
Final Answer :
True
Explanation :
This statement is true. A voucher system is a process that involves creating and approving vouchers, which are documents that authorize expenditures. This system helps to ensure that all expenditures are properly authorized and recorded before they are paid in cash.
Learning Objectives
- Comprehend the objective and operation of a voucher system in overseeing cash payouts.