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:

Agency Relationship

An arrangement where one party, the agent, acts on behalf of another, the principal, in dealings with third parties.

Lawful Purpose

A requirement that the objective or reason behind a contract or agreement must be legal and not against public policy for it to be enforceable.

Power Of Attorney

A specific type of express authority that grants an agent specific powers.

Incompetent Principal

A legal term referring to a person who lacks the capacity to engage in a contract or manage their own affairs due to mental disability, illness, or minority.