The voucher system of control:
A)Is a set of procedures and approvals designed to control cash receipts and the acceptance of liabilities.
B)Establishes procedures for verifying,approving,and recording liabilities for eventual cash payment.
C)Establishes procedures for receiving checks for the sale of verified,approved,and recorded activities.
D)Applies only when multiple purchases are made from the same supplier.
E)Is required in large companies but not beneficial for small to mid-sized companies.

Question

Quizplus · Accepted Answer

The voucher system of control involves establishing procedures for verifying, approving, and recording liabilities for eventual cash payment. Option A describes the control of cash receipts and the acceptance of liabilities, which is more related to cash control than the voucher system. Option C describes the procedures for receiving checks, but it does not capture the essence of the voucher system. Option D is not correct, as the voucher system can be used with any supplier, not just in cases of multiple purchases. Finally, option E is incorrect, as small to mid-sized companies can benefit from implementing the voucher system to improve their control over liabilities and expenses.

The Voucher System of Control