A Voucher Is an Internal File

question 4

Multiple Choice

A voucher is an internal file:

• A) Prepared after an invoice is received.
• B) Used as a substitute for an invoice.
• C) Used to accumulate information needed to control cash disbursements and to ensure that transactions are properly recorded.
• D) Takes the place of a bank check.
• E) Prepared before the company orders goods.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to shareholders, often reinvested in the business.

Dividend Restrictions

Limitations or rules imposed on a corporation's ability to pay dividends to shareholders, often due to legal, contractual, or financial conditions.

Public Corporations

Companies that have issued securities through an initial public offering (IPO) and are traded on at least one stock exchange or in over-the-counter markets.

Domestic Corporations

Companies that are registered and operate within the legal boundaries of a country, subject to its governance and taxation.