A voucher system is a set of procedures and approvals:
A)Designed to eliminate the need for subsidiary ledgers.
B)Designed to determine if the company is operating profitably.
C)Used almost exclusively by small companies.
D)Used to ensure that the company sells on credit only to creditworthy customers.
E)Designed to control cash disbursements and the acceptance of obligations.

Question

Quizplus · Accepted Answer

A voucher system is used to control cash disbursements and the acceptance of obligations. It involves a series of procedures and approvals that ensure that each payment made by a company is properly authorized and supported by relevant documentation. This helps to prevent errors and fraud, and ensures that the company has a complete record of all its financial transactions.

A Voucher System Is a Set of Procedures and Approvals