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

Question

Quizplus · Accepted Answer

A voucher system is a set of procedures and approvals for verifying, approving, and recording obligations for eventual cash disbursement, and for issuing checks for payment only of verified, approved, and recorded obligations. The other choices refer to different aspects of cash management and control but do not specifically describe the process of verifying and approving transactions for payment through a voucher system.

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