When processing and recording cash disbursements,it is important to have a method of cancelling the supporting documents to prevent their reuse as support for another cheque at a later time.A common method is to
A)shred the documents so they can't be reused.
B)transfer possession of the documents to a bank vault such as a safety deposit box.
C)move the documents to a permanent off-site facility such as a warehouse.
D)write the cheque number and payment date on the supporting documents.

Question

Quizplus · Accepted Answer

Writing the cheque number and payment date on the supporting documents is a common method of canceling them. This ensures that the same document cannot be used for another payment and helps in keeping track of the payments made. Shredding the documents or transferring them to a bank vault or off-site facility may also work, but they are not practical options for all businesses.

When Processing and Recording Cash Disbursements,it Is Important to Have