Which of the Following Is Not True of a Voucher

question 43

Multiple Choice

Which of the following is not true of a voucher system?

• A)All expenditures such as rent and interest would first be credited to Vouchers Payable before payment is made.
• B)Transactions are first entered in the voucher register,then payment is made in the voucher register.
• C)The check register replaces the cash receipts journal.
• D)Either A or B would be correct.

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the cushion a business has before it incurs a loss.

Variable Expenses

Expenditures that change in direct correlation with production levels or the quantity of sales, including costs like raw materials and direct labor.

Fixed Expenses

Costs that do not change regardless of the level of production or business activity.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in zero profit or loss.