Answer:
price-taking assumption.
free entry assumption.
Explanation:
A perfectly competitive market is one in which different firms compete for consumers of their products. The characteristics of the perfectly competitive market are:
- products are nearly identical
- all the firms are price takers. That is they are not able to determine price independently
- buyer knowledge of information about products is perfect and available to all
- free entry and exit to the market
- resources are perfectly mobile
In the given scenario above two of these rules are not obeyed.
Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world.
So they determine the price ( they are not price takers)
Also since they own nearly all the aluminium reserves there is no free entry for new firms
Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturityLPC issued the bonds:
Date Cash interest Effective interest Decrease in balance Outstanding balance
1/1/2021 $207,020
6/30/2021 $7,000 $6,211 $789 206,230
12/31/2021 7,000 6,187 813 205,417
6/30/2022 7,000 6,163 837 204,580
12/31/2022 7,000 6,137 863 203,717
6/30/2023 7,000 6,112 888 202,829
12/31/2023 7,000 6,085 915 201,913
6/30/2024 7,000 6,057 943 200,971
12/31/2024 7,000 6,029 971 200,000
Required:
What is the annual effective interest rate on the bonds?
Answer:
7%
Explanation:
Calculation to determine the annual effective interest rate on the bonds
Using this formula
Annual Stated interest = Annual cash interest / Face vale of bonds*100
Let plug in the formula
Annual Stated interest =($7000+$7000) / 200000*100
Annual Stated interest=$14,000/20,000
Annual Stated interest=7%
Therefore the annual effective interest rate on the bonds is 7%
Draw a demand for dollars curve. Label it D. Draw a supply of dollars curve. Label it S. Draw a point at the equilibrium quantity and equilibrium exchange rate. Draw an arrow between the D and S curves that indicates a price at which there is a surplus of dollars. Label it. What happens in the foreign exchange market when a surplus of dollars exists? When there is a surplus of dollars in the foreign exchange market, _____
Answer:
The forces of demand and supply in the market will pull the foreign exchange market into equilibrium.
Explanation:
When there is a surplus of dollar in the foreign exchange market the forces of demand and supply will pull the foreign exchange market into equilibrium. i.e. The exchange rate will be reduced to bring the exchange market to equilibrium. without change in demand or supply.
attached below is the required graph.
Bob has saved $30 per week to buy a new Blu-ray player. He compares two different models: a Panaview that is priced at $130 and a Zony model that is priced at $140. Bob decides to purchase the Zony Blu-ray player for $140. Identify what role money plays in each of the following parts of the story.
a. Sean can easily determine that the Panaview model has a lower price than the Zony model.
b. Sean saved $30 per week.
c. Sean pays $140 for the Blu-ray player.
Answer and Explanation:
The categorization is as follows:
a. It is a unit of account as it determined the panaview model along with the zony model plus the comparison is also there
b. It is the store of value because the saving should be the similar value over the time
c. It is the medium of exchange as he has purchased the player where the money is exchanged with the product
In this way it should be categorized
Following is information on two alternative investments being considered by Tiger Co. The company requires a 15% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Project X1 Project X2
Initial investment $ (98,000 ) $ (144,000 )
Expected net cash flows in:
Year 1 36,000 76,500
Year 2 46,500 66,500
Year 3 71,500 56,500
a. Compute each project's net present value.
b. Compute each project's profitability index. If the company can choose only one project, which should it choose?
Answer:
X1 NPV = $15,477.44
X2 NPV = $9,954.96
X1 PI = 1.16
X2 P2 = 1.07
X1 should be chosen
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
X1
Cash flow in year 0 = -98,000
Cash flow in year 1 = 36,000
Cash flow in year 2 = 46,500
Cash flow in year 3 = 71,500
I = 15%
NPV = 15,477.44
X2
Cash flow in year 0 = (144,000 )
Cash flow in year 1 = 76,500
Cash flow in year 2 = 66,500
Cash flow in year 3 = 56,500
I = 15%
NPV = 9954.96
profitability index = 1 + (NPV / Initial investment)
X1 - 1 + (15,477.44 / 98,000) = 1.16
X2 - 1 + (9954.96 / 144,000) = 1.07
X1 should be chosen because it has a higher NPV. this means that the project is more profitable than X2
To determine NPV using a financial calculator take the following steps:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Miller Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $12,800,000 on March 1, $10,560,000 on June 1, and $16,000,000 on December 31. Miller Company borrowed $6,400,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $12,800,000 note payable and an 11%, 4-year, $24,000,000 note payable. What is the actual interest for Miller Company
Answer:
Miller Company
The actual interest for Miller Company is:
= $4,688,000.
Explanation:
a) Data and Calculations:
Expenditures:
March 1 $12,800,000
June 1 $10,560,000
Dec. 31 $16,000,000
Notes Payable: Amount Actual Interest
January 1: 5-year, 12% Construction Loan = $6,400,000 $768,000
Year's: 3-year, 10% Note Payable = 12,800,000 1,280,000
Year's: 4-year, 11% Note Payable = 24,000,000 2,640,000
Total $43,200,000 $4,688,000
Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today are $250, real net returns to land are assumedto increase by 5% each year, inflation is 4%, the marginal tax rate is 20%, and thepretax risk adjusted discount rate is 10%.
a. 270.10
b. 216.08
c. 105.27
d. 163.84
Answer:
b. $216.08
Explanation:
Fn = Fo * (1+g)^n
Fn = $250*(1.05)^7
Fn = $250*1.40710
Fn = $351.775
Nominal net returns = $351.775 * (1.04)^7
Nominal net returns = $351.775 * 1.315932
Nominal net returns = $462.912
After tax return = Nominal net returns * (1 - 20%)
After tax return = $462.912 * (1 - 0.2)
After tax return = $370.33
After-tax, risk adjusted discount rate = 0.1*(1 - 0.2)
After-tax, risk adjusted discount rate = 0.1*0.8
After-tax, risk adjusted discount rate = 0.08
After-tax, risk adjusted discount rate = 8%
PV after-tax net return in 7th year = After tax return * (1+8%)^-7
PV after-tax net return in 7th year = $370.33 * (1+0.08)^-7
PV after-tax net return in 7th year = $370.33 * 0.583490
PV after-tax net return in 7th year = $216.08
Riverbend Inc. received a $240,000 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,710,000 before deducting the dividends received deduction (DRD), a $50,500 NOL carryover, and a $153,000 charitable contribution.
Corporate Income Tax Rates
Taxable Income Tax
$50,000 15% of the taxable income
$50,000-$75,000 $7,500 + 25% of taxable income over $50,000
$75,000-$100,000 $13,750 + 34% of taxable income over $75,000
$100,000-$335,000 $22,250 + 39% of taxable income over $100,000
$335,000-$10,000,000 $113,900 + 34% of taxable income over $335,000
$10,000,000-$15,000,000 $3,400,000 + 35% of taxable income over $10,000,000
$15,000,000-$18,333,333 $5,150,000 + 38% of taxable income over $15,000,000
Over $18,333,333 35% of the taxable income
a. What is Riverbend’s deductible DRD assuming it owns 11 percent of Hobble Corporation?
b. Assuming the facts in part (a), what is Riverbend’s marginal tax rate on the dividend?
c. What is Riverbend’s DRD assuming it owns 36 percent of Hobble Corporation?
d. Assuming the facts in part (c), what is Riverbend’s marginal tax rate on the dividend?
e. What is Riverbend’s DRD assuming it owns 89 percent of Hobble Corporation (and is part of the same affiliated group)?
f. Assuming the facts in part (e), what is Riverbend’s marginal tax rate on the dividend?
The projected capital budget of Kandell Corporation is $500,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $500,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out
Answer:
the total dividend pay out in the case when the residual dividend policy followed is $300,000
Explanation:
The computation of the total dividend pay out is given below:
= Net income - (equity × capital budget)
= $500,000 - (0.40 × $500,000)
= $500,000 - $200,000
= $300,000
Hence, the total dividend pay out in the case when the residual dividend policy followed is $300,000
Broker Brad accidentally deposited his commission in the trust fund account instead of his business account. Because it remained in the account for more than 25 days, he is guilty of:
Answer:
Commingling non-trust funds with trust funds
Explanation:
Trust funds
This is simply known as money or other valuable items that is received by the broker on behalf of another individual.
Non-trust funds
This are simply real estate commissions, general operating funds, rents and deposits.
Commingling
This is simply the act of combining a client's money with the agent's personal funds and it is illegal. It is the act of putting or depositing rent and security deposit into the trust account. When a Commissioner audits the account and sees either commingling of trust funds, the court may issue an order to restrain the broker from further mishandling of trust funds and from practicing real estate. It is a violation of real estate law if the trust account is commingled and it is considered commingling when the trust funds are first deposited into the general brokerage account and then transferred to the trust account.
If a licensee is found guilty of conversion of trust funds
1. There will be a revoke the license of the licensee.
2. The assets of the licensee may be sold to recover the converted funds.
3. The receiver account may be imposed on the licensee's assets in order to find and recover the converted funds.
Make-It Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is 1. neither illegal nor unethical. 2. unethical only. 3. illegal and unethical. 4. illegal only.
Answer:
Option 3
Explanation:
In simple words, the given case depicts the act of bribing under which one party gives certain favor to other party for their own benefit. In United states, this conduct is illegal and unethical. Bribing is done to get some extra benefits on the cost of society benefit and strict actions are taken against both parties if such claims comes to be true.
Thus, the correct option is 3.
Zeke's Soda is a small company. They have never grown much, but they have never quite gone out of business over their 75 year history.They have a secret recipe for a raspberry soda which is their bestselling drink. It has never been patented, but it has been known only to the family members who run the company ever since Old Zeke came up with it 75 years ago. None of the other employees have access to it.
Soda Giant buys a bottle of Zeke's Soda and runs it through sophisticated equipment that is able to analyze it and determine all of the ingredients. Soda Giant takes what it learns and starts to make and sell a soda identical to Zeke's.Can Zeke's Soda win a trade secret misappropriation action?
a) No, because a secret recipe is not the kind of thing that can be a trade secret.
b) No, because the trade secret protection has expired.
c) No, because Soda Giant did not misappropriate the information.
d) Yes.
Answer:
it is definitely a
hoakqaaa
On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $510,000 and a discount rate of 8%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2021
Answer: $503,200
Explanation:
Carrying value of note = Face value of note - Interest remaining
Interest remaining = Face value * Periodic interest rate * Number of months remaining / Total number of months for note
= 510,000 * 8%/2 * 2 / 6 months
= $6,800
Carrying value of note = 510,000 - 6,800
= $503,200
Note: Note is for 6 months so periodic interest was divided by 2 to make it a semi-annual rate.
what is the definition of abuse
Answer:
The improper usage or treatment of a thing, often to unfairly or improperly gain benefit. Abuse can come in many forms, such as physical or verbal maltreatment, injury, assault, violation, unjust practices, crimes, or other types of aggression.
Explanation:
Angelika is the Chief Operating Officer of One Spice Inc., a firm that grows and processes the Naga Viper pepper, one of the world's hottest peppers. Angelika wants to better understand the relationship between her firm's organizational culture and the ability to achieve competitive advantage. The relationship between these two states that:______.
a. having a strong culture leads to achieving a competitive advantage only when companies are pursuing a cost leadership strategy.
b. a firm can achieve a competitive advantage when their organizational culture follows the VRIO principles.
c. having a strong culture leads to a competitive advantage only when companies are pursuing a differentiation strategy.
d. having a strong culture always leads to achieving a competitive advantage because it leads to greater employee engagement.
The relationship between two states that having a strong culture leads to a competitive advantage only when companies are pursuing a differentiation strategy.
What is the term Competitive advantage about?
Competitive advantage refers to a manner in which rivalry between rivals can be created. The benefit for the consumer is improved by both lower prices and more advantages and services which support higher pricing.
In general, there are four possible ways for a company to differentiate–becoming the cost leader in a small or wide range of business activities (i.e., being the cheapest producer in the industry), and becoming a differentiation leader (i.e. competing in areas other than price valued by customers).
Therefore, correct option is C.
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Binford Corporation's contribution margin ratio is 58%, and its fixed monthly expenses are $94,000. Assume that the company's sales for May are expected to be $178,000.
Required:
Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.
Answer:
$9,240
Explanation:
Calculation to Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change
Using this formula
Net operating income = (CM ratio × Sales) - Fixed expenses
Let plug in the formula
Net operating income= (0.58× $178,000) - $94,000
Net operating income= $103,240 - $94,000
Net operating income= $9,240
Therefore the company's net operating income for May, assuming that the fixed monthly expenses do not change is $9,240
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $1,500,000 for January. On February 7, a customer received warranty repairs requiring $325 of parts and $120 of labor.
Required:
a. Journalize the adjusting entry required at January 31, the end of the first month of the current of current fiscal year, to record the accrued product warranty.
b. Journalize the entry to record the warranty work provided in February.
Answer: Please see answer in explanation column
Explanation:
a)Account titles and explanation Debit Credit
Warranty Expense $30,000
Warranty Payable $30,000
Calculation :
2 % x $1,500,000 =$30,000
b) Account titles and explanation Debit Credit
Warranty Provision $445
Materials $325
Salaries Payable $120
Group Viewer LLC, a software company, used to provide profit sharing plans for its employees. After organizational restructuring, the management decides to replace the profit sharing plans with commissions for each employee. Which of the following is true of Group Viewer LLC?
a. It provided individual incentives; now it provides group incentives
b. It provided group incentives; now it provides organizational incentives
c. It provided individual incentives; now it provides organizational incentives
d. It provided organizational incentives; now it provides individual incentives
Answer:
d. It provided organizational incentives; now it provides individual incentives
Explanation:
Group viewer have the profit-sharing plan that could be provided the incentive of an organziation to the employees. This plan should be applied sometimes. Now if the commission is changed for each and every employee so it should be an individual incentive
Also the profit-sharing plan should not be either an individual or group incentive but the same should be the part of the organization
Therefore the option d is correct
In the current year, Marnie rented her vacation home for 75 days, used it for personal reasons for 22 days, and left it vacant for the remainder of the year. Her income and expenses are as follows: Rental income $ 18,000 Property taxes 2,500 Mortgage interest 3,500 Utilities 1,100 Repairs and maintenance 1,000 Depreciation 5,200 What is Marnie's net income or loss from the activity
Answer: $11123
Explanation:
Based on the information given, Marnie's net income or loss from the activity will be calculated thus:
Rental income = $18000
Less: Property tax = $2500 × 75/365 = $514
Less: Mortgage interest = $3500 × 75/365 = $719
Less: Utilities = $1100 × 75/97 = $851
Less: Repairs and Maintenance = $1000 × 75/97 = $773
Less: Depreciation = $5200 × 75/97 = $4021
Net income = $11,123
Kermit plans to open a boutique. The initial investment is $10,000. He has to spend $1,500 in annual operations and maintenance. The boutique generates $3,000 in revenues every year. Kermit uses a 10 year planning horizon and a MARR of 12%. The correctly calculated Rate of Return for this project is ________________%.
Answer:
8.14
Explanation:
The Rate of Return is 8.14 from my calculations which you can find in the attached file.
Now since the Rate of return is 8.14. Which is less than MARR of 12%, it shows that investment is not good.
Year Initial Annual Maintenance Annual Revenue Total Cash Flow
0 -$10,000 -$10,000
1 -$1,500 $3,000 $1,500
2 -$1,500 $3,000 $1,500
3 -$1,500 $3,000 $1,500
4 -$1,500 $3,000 $1,500
5 -$1,500 $3,000 $1,500
6 -$1,500 $3,000 $1,500
7 -$1,500 $3,000 $1,500
8 -$1,500 $3,000 $1,500
9 -$1,500 $3,000 $1,500
10 -$1,500 $3,000 $1,500
Internal Rate of Return 8.1442% [IRR() in excel]
The rate of return is 8.1442 which is less than MARR of 12% investment is not worth it
Recessions in China and India would cause:________
a. the U.S. price level to fall and real GDP to rise.
b. the U.S. price level to rise and real GDP to fall.
c. the U.S. price level and real GDP to fall.
d. the U.S. price level and real GDP to rise.
Answer:
b. the U.S. price level to rise and real GDP to fall.
Explanation:
A recession can be regarded as macroeconomic term which is used to describe significant decline that occur in general economic activity within a designated region. It can be regarded as economic decline of two consecutive quarters which is been reflected by GDP along with some monthly indicators, this indicators could be a rise in unemployment.
For, instance Recessions in China and India would cause the U.S. price level to rise and real GDP to fall.
On October 1, 2020 Sheffield Corp. issued 5%, 10-year bonds with a face value of $6140000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Sheffield Corp. would be:_________
Answer: $70610
Explanation:
Following the information given, the issue price of the bond will be:
= $6,140,000 × 1.04
= $6,385,600
The premium on bonds payables will be:
= $6,385,600 - $6,140,000
= $245,600
Cash interest Payables will be:
= 6,140,000 × 5% × 3/12
= $76,750
Bond Premium amortization for Each Year will be:
= 245,600 / 10
= $24,560
Then, the premium amortized will be:
= $24,560 × 3/12
= $6,140
Therefore, the interest expenses on Dec 31 will be:
= Cash interset Payables - Premium amortized
= $76,750 - $6,140
= $70,610
Geraldo is a customer care executive at a telecommunications service provider. He receives a complaint from a customer about an unnecessary $20 charge on his phone bill. If the company follows the customer service management process, Geraldo is most likely to _____.
Answer:
Provide a quick response to the customer using customer care software.
Explanation:
Software Programs
This is simply regarded as a service tool or software distribution model where software applications are hosted by a vendor or service provider and made available to customers over a network that is often the internet.
There are some of the software that is available. They includes the following:
Inventory managementReceivingStore Replenishment POS etc.Marketing Channel
This is used by individuals and firms involved in making a product or service available for use or consumption by consumers or industrial users.
Tin Roof's net cash flows for the next three years are projected at $72,000, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. What is the value of the firm if the WACC is 9.32%
Answer:
$1,279,622.65
Explanation:
The value of the company is the present value of its future cash flows for the three-year planning horizon plus the present value of its continuing value beyond year 3, all discounted using the WACC as the appropriate discount rate.
continuing value=year 3 cash flow*(1+terminal growth rate)/(WACC-terminal growth rate)
continuing value= $84,000*(1+3.2%)/(9.32%-3.2%)=$1,416,470.59
present value of continuing value=$1,416,470.59/(1+9.32%)^3=$1,084,198.23
present value of 3-year cash flows=$72000/(1+9.32%)^1+$78,000/(1+9.32%)^2+$84,000/(1+9.32%)^3
present value of 3-year cash flows=$195,424.42
value of the company=$1,084,198.23+$195,424.42
value of the company=$1,279,622.65
g Economic indicators can help give us Group of answer choices a direction in which economists can push the economy at the macro level. insight into which way the stock market is going to move over the coming year. an understanding of the state of the economy.
Answer:
The correct option is "an understanding of the state of the economy".
Explanation:
An economic indicators can be described as macroeconomic data that are employed to assess health, state, or growth trends of the economy of a nation. They therefore provide a knowledge of the current status of the economy.
Examples of economic indicators are inflation rate, unemployment rate, gross domestic product (GDP), and among others.
Based on the explanation above, the correct option is "an understanding of the state of the economy". That is Economic indicators can help give us an understanding of the state of the economy.
Tristan transfers property with a tax basis of $1,255 and a fair market value of $1,570 to a corporation in exchange for stock with a fair market value of $1,255 and $276 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $39 on the property transferred. What is the corporation's tax basis in the property received in the exchange
Answer: $1531
Explanation:
The corporation's tax basis in the property received in the exchange will be the addition of Tristan's Tax basis and the gain that's recognized on exchange by Tristan.
The gain realized will be:
= $1,570 - $1,255
= $315
Boot received = $276
Therefore, lower of $315 or $276 is $276.
The corporation's tax basis in the property received will then be:
= $1255 + $276
= $1531
is an important factor when
According to your reading material,
looking at your market and its needs.
a.
b.
location
capital
insurance
timing
d.
Answer:
Explanation:
insurance
According to your reading material, insurance Is an important factor when looking at your market and its needs. Option C is the correct answer.
While factors like location, capital, and timing are important considerations, insurance is also a crucial factor to take into account when assessing your market and its needs. Insurance provides protection and risk management for your business, its assets, and potential liabilities. Option C is the correct answer.
Having appropriate insurance coverage helps safeguard your business against unexpected events, such as accidents, property damage, legal claims, or disruptions to operations. It provides financial protection and peace of mind, allowing you to focus on meeting your market's needs without the constant worry of potential losses. Insurance coverage can vary depending on the nature of your business and industry. Common types of insurance include general liability insurance, property insurance, professional liability insurance, and workers' compensation insurance.
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The complete question is, " According to your reading material, ______ Is an important factor when looking at your market and its needs.
a. location
b. capital
c. insurance
d. timing"
A ________ is a repository of customer information that records all of the contacts a customer has with a firm, and generates a customer profile that is available to appropriate individuals in the firm.
Answer:
CRM system
Explanation:
K Company estimates that overhead costs for the next year will be $2,967,000 for indirect labor and $860,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 86,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 6 direct labor hours
Answer:
$267.00
Explanation:
First and foremost, it should be borne in mind that the overhead per direct labor hour is the total forecast overhead costs for next year divided by the planned direct labor hours, in essence, we simply determine plantwide overhead allocation rate, which is the basis for determining the amount of direct to be assigned to 6 direct labor hours
plantwide overhead allocation rate=(indirect labor overhead+factory utilities)/planned direct labor
indirect labor overhead cost=$2,967,000
factory utilities=$860,000
planned direct labor hours=86,000
plantwide overhead allocation rate=($2,967,000+$860,000)/86000
plantwide overhead allocation rate=$44.50
overhead allocation to a product requiring 6 direct labor hours=6*$44.50
overhead allocation to a product requiring 6 direct labor hours=$267.00
Sheller Company estimates that its pension plan asset will earn a return of 10%. The beginning balance of plan assets was $500,000 and the ending balance was $560,000. During the year, the plan earned an actual return of 8%. As a result of this, pension expense will decrease by
Answer: $50000
Explanation:
From the question, we are informed that Sheller Company estimates that its pension plan asset will earn a return of 10% as the beginning balance of plan assets was $500,000 and the ending balance was $560,000.
Due to this, then the pension expense will decrease by:
= 10% × $500,000
= $50,000
It should be noted that the expected return on plan assets will reduce pension expense by $50000.
Management uses a voucher system to help control and monitor cash payments. Identify the key documents that are part of a voucher system of control.
a. Invoice
b. Outstanding check
c. Purchase order
d. Voucher
Answer:
a. Invoice
c. Purchase order
d. Voucher
Explanation:
Voucher system can be regareded s method used in authorization of the the disbursement of cash. In this system, A voucher will be filled out, this filled voucher will give amount to
be paid for as well as account number to be charged. After the approval of the voucher , there will be authorization of the disbursement system so that payment can be issued.
It should be noted that the Management uses a voucher system to help control and monitor cash payments. the key documents that are part of a voucher system of control are;
✓Invoice
✓ Purchase order
✓Voucher
