The Voucher System of Control

question 98

Multiple Choice

The voucher system of control:

• A)Is a set of procedures and approvals designed to control cash receipts and the acceptance of obligations.
• B)Establishes procedures for verifying,approving,and recording obligations for eventual cash disbursement.
• C)Establishes procedures for receiving checks for the sale of verified,approved,and recorded activities.
• D)Applies only when multiple purchases are made from the same supplier.
• E)Is required in large companies but not beneficial for small to mid-sized companies.

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Definitions:

General Journal

A primary accounting record used to record all types of transactions, including adjustments, in chronological order.

General Ledger

A comprehensive collection of a company's accounts, including all transactions and balances, used for preparing financial statements.

Special Journal

A type of accounting journal designed for recording a specific kind of transaction in a more efficient and detailed manner.

General Journal

A comprehensive record of all financial transactions of a company, listed in chronological order.