The cash disbursement function usually involves simultaneously accruing the liability and recording the cash disbursement.

Question

Quizplus · Accepted Answer

The cash disbursement function primarily involves recording the cash outflow or payment against a liability that has typically been previously recorded or accrued. The accrual of the liability and the cash disbursement are separate events in the accounting process.

The Cash Disbursement Function Usually Involves Simultaneously Accruing the Liability