Which of the following statements is not correct?
A) the voucher system is used to improve control over cash disbursements
B) the sum of the paid vouchers represents the voucher payable liability of the firm
C) the voucher system permits the firm to consolidate payments of several invoices on one voucher
D) many firms replace accounts payable with a voucher payable system

Question

Quizplus · Accepted Answer

The sum of the paid vouchers does not represent a liability; rather, it represents amounts that have already been settled. The liability is represented by unpaid vouchers.

Which of the Following Statements Is Not Correct