Present and Potential Donors Are the Primary Users of Private

question 164

True/False

Present and potential donors are the primary users of private not-for-profit
financial statements.

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Definitions:

Voucher System

A control mechanism in accounting that uses vouchers as evidence for transactions before they are posted to accounts, enhancing financial accuracy and integrity.

Prenumbered Voucher

A control mechanism used in accounting to ensure that all transactions are recorded and processed in a sequential manner, mitigating errors and fraud.

Expenditure

Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.

Bank Reconciliation

The process of comparing a company's bank account balance as reported by the bank with the company's own records and reconciling any differences.