In the Processing and Recording of Cash Disbursements

question 41

Multiple Choice

In the processing and recording of cash disbursements,

• A) after a check includes the signature of an authorized person, it is a liability.
• B) when a check cashed by the vendor has cleared the bank, it is called an outstanding check.
• C) in many cases, the company submits payment to the vendor electronically through an electronic funds transfer (EFT) between the company's bank and the vendor's bank.
• D) the accounts payable master file is a computer-generated file that includes all cash disbursement transaction processed by the accounting system for a period.

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