Employees Cannot Be Expected to Follow Policies and Procedures Ofwhich

question 44

True/False

Employees cannot be expected to follow policies and procedures ofwhich they are unaware.

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Definitions:

Voucher System

A control mechanism in accounting that involves authorization and documentation before a financial transaction is made.

General Journal Entries

Basic accounting records where all day-to-day financial transactions of a business are initially recorded, before being transferred to specific accounts in the general ledger.

Purchase Discounts Lost

Purchase discounts lost refer to the additional amount paid by a buyer for failing to take advantage of the early payment discount offered by a supplier.

Net Method

An accounting technique used to record purchases or sales of goods after deducting any discounts offered at the time of purchase or sale.