The Voucher System of Control

question 156

Multiple Choice

The voucher system of control:

• A) Is a set of procedures and approvals designed to control cash receipts and the acceptance of obligations.
• B) Applies only when multiple purchases are made from the same supplier.
• C) Establishes procedures for verifying, approving, and recording obligations for eventual cash disbursement.
• D) Is required in large companies but not beneficial for small to mid-sized companies.
• E) Establishes procedures for receiving checks for the sale of verified, approved, and recorded activities.

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Definitions:

Present Value

Today's value of a future monetary amount or a string of cash flows, considering a specified rate of return.

Periodic Interest Rate

The interest rate charged or earned over a particular period of time, often monthly, quarterly, or annually, as opposed to the annual percentage rate (APR).

Annuity

A retirement funding product that assures fixed payments over time to the receiver, primarily aimed at providing a stable income for retirees.

Payment Interval

The regularity with which payments are dispensed, for instance, on a monthly, quarterly, or yearly basis.