When processing and recording cash payments, it is important to have a method of cancelling the supporting documents to prevent their reuse as support for another cheque at a later time.A common method is to:
A) move the documents to a permanent off-site facility such as a warehouse.
B) transfer possession of the document to a bank vault such as a safety deposit box.
C) write the cheque number on the supporting documents.
D) shred the documents so they can't be reused.

Question

Quizplus · Accepted Answer

Writing the cheque number on the supporting document is the best choice as it allows for easy reference and tracking of the cheque and helps to prevent the supporting document from being reused for another transaction. The other options either provide insufficient control or destroy the supporting document, which may be needed for future reference or audits.

When Processing and Recording Cash Payments, It Is Important to Have