A key factor in a voucher system is:
A) Only approved departments and individuals are authorized to incur an obligation that will result in the payment of cash.
B) Procedures for purchasing, receiving and paying for merchandise are divided among several departments.
C) The system limits the individuals that can incur cash payment obligations for a company.
D) It should be extended to all expenses.
E) All of these.

Question

Quizplus · Accepted Answer

A voucher system is a control mechanism in accounting that ensures only authorized transactions are processed for payment. It involves several steps including authorization, procurement, receiving, and payment, typically divided among different departments to maintain checks and balances. This system applies to all expenses to ensure comprehensive control over cash disbursements.

A Key Factor in a Voucher System Is