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It Is Possible for a Company to Be Profitable,yet Not

question 216

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It is possible for a company to be profitable,yet not have enough cash to pay its bills.


Definitions:

Voucher System

A method of accounting in which a record is kept for each transaction, detailing the necessary approvals and documentation.

Source Documents

Original records that provide evidence of financial transactions, such as receipts, invoices, or bank statements.

Invoice

A document detailing a transaction between a buyer and seller, including the quantities, prices, terms, and conditions of sale.

Tickler File

A reminder system or method used for tracking deadlines and important dates, often organized by date.

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