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:

Secured Creditors

Creditors who have a legal claim to specific assets of the debtor as collateral for the debt they are owed, providing them with a level of protection in case of the debtor's default.

Exempt

To be free from an obligation, duty, or liability to which others may be subject; typically used in contexts like taxes, legal requirements, or regulations.

Redemption

The buying back of one’s property after it has been sold. The right to redeem property sold under an order or decree of court is purely a privilege conferred by, and does not exist independently of, statute.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.