For Good Controls Over Cash Payments,the Person Who Orders Goods

question 152

True/False

For good controls over cash payments,the person who orders goods from a supplier should always be different from the person who approves the payment.

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Definitions:

Information

Data that is processed, organized, structured, or presented in a given context to make it meaningful and useful.

Voucher

A written document that serves as evidence of a transaction and authorizes payment.

Vouchers Payable

These are obligations or liabilities for goods and services received that are not yet paid for, usually validated by a voucher system.

Gross Method

An accounting practice where purchases are recorded at their full invoice price without deducting any purchase discounts taken.