Question

Management uses a voucher system to help control and monitor cash disbursements. Which one or more of the four documents listed below are prepared as part of a voucher system of control?

1. Purchase order b. Outstanding check c. Invoice d. Voucher

Short answer

Answer

Purchase Order, Invoice, and Voucher are prepared as part of a voucher system of control.

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction to Purchase Order

A purchase order (PO) is a commercial report and first official offer issued by a purchaser to a seller, demonstrating types, quantities, and agreed costs for products or services. They are controlling the buying of products and services from outside suppliers.

Introduction to Invoice

An invoice is a period-stamped commercial report that organizes and records transactions between purchasers and sellers. Assuming that goods or services are purchased on credit, the invoice, as a rule, indicates the details of the provided information and gives data on the accessible techniques for payment.

Introduction to Voucher

A voucher is a written and a source document evidencing proof of a transaction containing the date and amount of the transaction with the other party's name, and all the vouchers are recorded in the voucher register.