Which of the Following Statements Is True Regarding the Documents

question 119

Multiple Choice

Which of the following statements is true regarding the documents in a voucher system?

• A)All voucher systems are the same.
• B)Recording a purchase is initiated by an invoice approval.
• C)A well-designed voucher system will allow department managers to place orders directly with suppliers for control purposes.
• D)A voucher system is most commonly used in very small companies to make up for the lack of other internal controls.
• E)A well designed voucher system will eliminate all fraud and error.

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Definitions:

Line Positions

Roles in an organization directly involved in its core activities and responsible for achieving its primary objectives, as opposed to support or administrative positions.

Vice President

An officer in a company or institution, ranking below a president and typically responsible for a specific department or function.

Managerial Accounting Reports

Financial documents that provide detailed financial and operational information tailored to the needs of a company's management for decision making.

Relevance

The quality of information that makes it significant and useful for decision-making purposes.