Which of the following statements is correct regarding a voucher system?
A)The journal entry to record the asset purchased and liability owed should be recorded when the bill for goods or services is received.
B)A voucher system is most commonly used in very small companies to make up for the lack of other internal controls.
C)A well-designed voucher system will allow employees requiring office supplies to place orders directly with suppliers for control purposes.
D)A well-designed voucher system will eliminate fraud and errors.

Question

Quizplus · Accepted Answer

The journal entry to record the asset purchased and liability owed should be recorded when the bill for goods or services is received (step 4).Most companies rely on a voucher system to control transactions relating to cash payments.Employees requiring office supplies should complete a purchase requisition that must be approved by a supervisor before the order is place with the supplier.Internal controls,which include voucher systems,can never completely prevent and detect errors and fraud.

Which of the Following Statements Is Correct Regarding a Voucher