Asked by Kelin Martinez on May 08, 2024
Verified
A voucher system is a set of procedures and approvals designed to control cash payments and the acceptance of liabilities.
Voucher System
A control mechanism in accounting to approve and document all disbursements of cash for business transactions.
Cash Payments
Transactions involving the outflow of cash to settle debts, purchase goods, or cover expenses.
- Recognize the use and purpose of a voucher system in internal controls.
Verified Answer
TB
Tommy BarronMay 15, 2024
Final Answer :
True
Explanation :
This statement is true. A voucher system helps to ensure that cash payments are authorized and recorded properly, and also helps to prevent fraudulent or unauthorized expenses.
Learning Objectives
- Recognize the use and purpose of a voucher system in internal controls.
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