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)Internal cash system.
B)Petty cash system.
C)Cash disbursement system.
D)Voucher system.
E)Cash control 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. It ensures proper controls and reduces the risk of fraud and errors in the disbursement process. The other options either do not specifically mention the procedures and approvals for verifying and recording obligations, or are too broad to be specific to the disbursement process.

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