The Voucher System Strengthens Internal Control Because

question 20

Multiple Choice

The voucher system strengthens internal control because:

• A)all the duties of preparing a voucher and the receiving reports are assigned to multiple employees.
• B)certain payments,which are made on a regular basis,such as monthly rent payments,still need to be vouchered.
• C)the employee who approves all vouchers then sends the approved vouchers to others who prepare the voucher register and the check register.
• D)All of these answers are correct.

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Definitions:

Invested Today

The action of allocating resources, usually money, in the present with the expectation of receiving a future return.

Equal Payments

Regular payments of the same amount over time, commonly associated with loans or annuities.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, per period of time.

Future Value

The value of a current asset at a specified date in the future, adjusted for factors like interest rates and compounding.