Which of the following statements is correct regarding a voucher system?
A. The journal entry to record the asset purchased and liability owed should be recorded when the bill for goods or services is received.
B. A voucher system is most commonly used in very small companies to make up for the lack of other internal controls.
C. A well-designed voucher system will allow employees requiring office supplies to place orders directly with suppliers for control purposes.
D. A well designed voucher system will eliminate fraud and errors.
Answer:A
Which of the following statements is correct regarding a voucher system?
A. The journal entry to record the asset purchased and liability owed should be recorded when the bill for goods or services is received. B. A voucher system is most commonly used in very small companies to make up for the lack of other internal controls. C. A well-designed voucher system will allow employees requiring office supplies to place orders directly with suppliers for control purposes. D. A well designed voucher system will eliminate fraud and errors.