At the time that an AP/CD process makes payment for goods or services, the process generally follows which order."
A) select and record payments, prepare proposed payments, issue and record disbursements
B) prepare proposed payments, issue and record disbursements, select and record payments
C) issue and record disbursements, select and record payments, prepare proposed payments
D) prepare proposed payments, select and record payments, issue and record disbursements

Question

Quizplus · Accepted Answer

The correct order for an Accounts Payable/Cash Disbursements (AP/CD) process when making payment for goods or services typically starts with preparing proposed payments based on due invoices or payment terms. Next, the process involves selecting and recording those payments that are to be made, ensuring that all necessary approvals are in place and that the payments are properly recorded in the accounting system. Finally, the process concludes with issuing and recording the disbursements, which involves actually making the payment (via check, electronic transfer, etc.) and recording the transaction in the company's financial records.

At the Time That an AP/CD Process Makes Payment for Goods