In the processing and recording of cash disbursements,
A) after a check includes the signature of an authorized person, it is a liability.
B) when a check cashed by the vendor has cleared the bank, it is called an outstanding check.
C) in many cases, the company submits payment to the vendor electronically through an electronic funds transfer (EFT) between the company's bank and the vendor's bank.
D) the accounts payable master file is a computer-generated file that includes all cash disbursement transaction processed by the accounting system for a period.

Question

Quizplus · Accepted Answer

Electronic funds transfer (EFT) is a common method for companies to submit payment to vendors. It involves a secure transfer of funds between the company's bank and the vendor's bank, without the need for physical checks.

Answer: D
 The accounts payable master file is a computer-generated file that includes all cash disbursement transactions processed by the accounting system for a period. This file is used to keep track of outstanding payments, monitor vendor performance, and generate financial reports.

In the Processing and Recording of Cash Disbursements