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:

Principal

The original amount of money invested or loaned, before interest, or the primary party engaged in a contract or transaction.

Authority

The legal power or right given to an individual or entity to make decisions, and enforce obedience.

Agents

Persons authorized to act on behalf of another, known as the principal, in legal or business matters.

Succession Planning

The strategy for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.