A voucher system is a series of prescribed control procedures:
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 specifically designed to control cash disbursements and the acceptance of obligations. It ensures that proper documentation and authorization are obtained before payments are made, thereby reducing the risk of fraud and errors. It is not designed to eliminate the need for subsidiary ledgers, determine profitability, or assess the creditworthiness of customers. While voucher systems are commonly used by small companies, they are also used by larger organizations to enhance their internal controls.

A Voucher System Is a Series of Prescribed Control Procedures