A voucher is used to record which of the following?

A voucher is used to record which of the following?

• A. A liability
• B. Revenue
• C. An expense
• D. An asset

Answer: (A)

A voucher records a liability. A voucher is a formal document used to authorize and document a payment to a supplier, creating an obligation to pay (an accounts payable liability) in the books. It links the purchase details, invoice amount, and approval, supporting accrual accounting by recognizing the obligation before cash actually flows. It isn’t about revenue, which is income earned from sales; it isn’t the expense itself, since an expense is the cost recognized when goods or services are consumed; and it isn’t an asset, which is something the organization owns. The voucher may accompany the entry that records the expense or asset, but its primary purpose is to establish and control the liability.

A voucher records a liability. A voucher is a formal document used to authorize and document a payment to a supplier, creating an obligation to pay (an accounts payable liability) in the books. It links the purchase details, invoice amount, and approval, supporting accrual accounting by recognizing the obligation before cash actually flows. It isn’t about revenue, which is income earned from sales; it isn’t the expense itself, since an expense is the cost recognized when goods or services are consumed; and it isn’t an asset, which is something the organization owns. The voucher may accompany the entry that records the expense or asset, but its primary purpose is to establish and control the liability.