Unlock Your Potential with Vouchers in Organizations

How can authorization forms like vouchers streamline expenditures in organizations?

Choose one:

A. By creating invoices

B. By preparing vouchers

C. By submitting receiving reports

D. By issuing purchase orders

Final answer:

A voucher is the authorization form which is prepared for each expenditure in most medium and large organizations. It is an internal document used to gather and arrange necessary documentation and approvals prior to issuing a payment.

Explanation:

An authorization form which is prepared for each expenditure in most medium and large organizations is a voucher. A voucher is an internal document used in a company's accounts payable department in order to collect and organize the necessary documentation and approvals before issuing a payment. It typically includes details such as the reason for the expenditure, the specific amount to be paid, the department from which the funds will be drawn, and approvals from appropriate managers or leaders within the organization.