Which of the following statements is NOT correct?
A) The voucher system is used to improve control over cash disbursements.
B) The sum of the paid vouchers represents the voucher payable liability of the firm.
C) The voucher system permits the firm to consolidate payments of several invoices on one voucher.
D) Many firms replace accounts payable with a voucher payable system.

Question

Quizplus · Accepted Answer

The sum of the paid vouchers does not represent a liability; rather, it represents payments that have already been made, thus reducing liabilities.

Which of the Following Statements Is NOT Correct