Which of the Following Statements Regarding the Maintenance of Adequate

Multiple Choice

Which of the following statements regarding the maintenance of adequate records and documentation in the cash disbursement process is NOT true?

A) An accounts payable subsidiary ledger and a cash disbursement journal are fundamental records in the cash disbursement process.
B) The practice of issuing checks on prenumbered forms creates a record of the sequence of transactions.
C) The orderly maintenance of accounts payable records facilitates effective cash management techniques.
D) Physical controls should be in place in the areas where cash is retained and disbursed.