The Voucher System Requires That Invoices Be Compared with Receiving

question 13

Multiple Choice

The voucher system requires that invoices be compared with receiving reports and express bills before a voucher is prepared and approved for payment.

• A)Unrecorded checks appear in the bank statement
• B)The treasurer takes funds by preparing a fictitious voucher charging "Miscellaneous General Expenses"
• C)An employee in the purchasing department sends through fictitious invoices and receives payment
• D)A cash shortage is covered by underfooting outstanding checks on the bank reconciliation
• E)A cash shortage is covered by omitting some of the outstanding checks from the bank reconciliation

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Definitions:

Variable Cost

Expenses that change in proportion to the amount of goods or services produced.

Net Present Value

An investment's difference between the present value of cash inflows and the present value of cash outflows over time.

Monthly Interest Rate

The interest rate applied on a monthly basis to loans or savings, affecting the amount of monthly interest payments or earnings.

Variable Cost

Costs that vary directly with the level of production or output.