Asked by Jaelyn Collins on Jul 17, 2024
Verified
In a voucher system vouchers are prepared in the accounts receivable department.
Voucher System
A control mechanism in accounting that requires all company expenditures to be documented with vouchers, supporting the authenticity of transactions.
Accounts Receivable
Outstanding receivables from clients to a business for supplied products or executed services awaiting payment.
- Understand the components and significance of a voucher system in controlling cash receipts and disbursements.
Verified Answer
CP
Conley PetermeierJul 18, 2024
Final Answer :
False
Explanation :
Vouchers are typically prepared in the accounts payable department, not accounts receivable. The accounts payable department creates vouchers as a means to approve and track expenses for payment to vendors, suppliers, and other third-party entities.
Learning Objectives
- Understand the components and significance of a voucher system in controlling cash receipts and disbursements.
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