A Voucher System Is a Series of Prescribed Control Procedures

question 49

Multiple Choice

A voucher system is a series of prescribed control procedures

• A) to check the credit worthiness of customers.
• B) designed to assure that disbursements by check are proper.
• C) which eliminates the need for a sales journal.
• D) specifically designed for small firms who may not have checking accounts.

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Definitions:

Straight-Line Depreciation

A method of computing depreciation for accounting purposes where an asset's cost is reduced uniformly over its useful life.

Tax Savings

Reduction in tax payments achieved through allowable deductions, credits, or adjustments.

Capital Budgeting

The method of assessing and choosing long-term investment opportunities that align with the company's objective of maximizing wealth.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.