A Voucher Is an Internal Document or File

question 33

Multiple Choice

A voucher is an internal document or file:

• A)Prepared after an invoice is received.
• B)Used as a substitute for an invoice if the supplier fails to send one.
• C)Used to accumulate information needed to control cash disbursements and to ensure that transactions are properly recorded.
• D)Takes the place of a bank check.
• E)Prepared before the company orders goods to make sure that all goods are being ordered from an approved vendor list.

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Definitions:

Useful Life

The duration over which an asset is expected to be economically viable and useful to the owner.

Depreciation Expense

The systematic allocation of an asset's cost over its useful life, reflecting the consumption or wear and tear of the asset.

Residual Value

The anticipated monetary value of an asset at the end of its operational life.

Units-Of-Production Depreciation

A depreciation method that allocates the cost of an asset over its useful life based on units produced rather than time, reflecting actual wear and tear.