Asked by Jessica Sheppard on May 13, 2024
Verified
When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.
Voucher System
A control or accounting system where vouchers (documents that prove a transaction) are used to authorize and record transactions in an accounts payable system.
Account Payable
The liability created by a purchase on account.
Credit Balance
A situation where the sum of credits in an account exceeds the sum of debits, often indicating a liability or revenue.
- Identify the procedures and significance of a voucher system in accounting for payables.
Verified Answer
Learning Objectives
- Identify the procedures and significance of a voucher system in accounting for payables.
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