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) write the cheque number on the supporting documents.
B) move the documents to a permanent off- site facility such as a warehouse.
C) transfer possession of the document to a bank vault such as a safety deposit box.
D) shred the documents so they can't be reused.

Question

Quizplus · Accepted Answer

Writing the cheque number on the supporting documents provides a clear reference for future reconciliation and prevents the same document from being used again. The other options, such as moving the documents to an off-site facility or shredding them, may not provide sufficient documentation for record-keeping purposes. Transferring the documents to a bank vault can also be expensive and time-consuming. Writing the cheque number on the documents is a simple yet effective method of preventing fraud and ensuring accurate record-keeping.

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