A set of procedures and approvals for verifying,approving and recording liabilities for eventual cash payment,and for issuing checks for payment only of verified,approved,and recorded liabilities is referred to as a(n):
A)Internal cash system.
B)Petty cash system.
C)Cash disbursement system.
D)Voucher system.
E)Cash control system.

Question

Quizplus · Accepted Answer

A voucher system is a set of procedures and approvals for verifying, approving, and recording liabilities for eventual cash payment, and for issuing checks for payment only of verified, approved, and recorded liabilities. This system ensures that all cash disbursements are properly authorized and supported by appropriate documentation. Internal cash system, petty cash system, and cash control system are not specific terms used to describe this process.

A Set of Procedures and Approvals for Verifying,approving and Recording