Question

WOTF is true?

A. The cash disbursement function is part of accounts payable
B. Cash disbursement is an independent accounting function
C. Cash disbursement is a treasury function
D. The cash disbursement function is part of the general ledger department
E. None of the above are true

Answer 1

Cash disbursement is a treasury function that deals with paying out cash or checks from a company, which is typically overseen by the treasury department after the Accounts Payable has verified the transactions.

Step-by-step explanation:

You asked which of the following is true regarding the cash disbursement function within a company. The correct answer is C. Cash disbursement is a treasury function. The cash disbursement process deals with paying out cash or checks from a company, and it is usually managed by the treasury department, which is responsible for handling cash and interpreting the company's financial position. While Accounts Payable (AP) is responsible for verifying and recording payable transactions before they are paid, the actual disbursement of funds is typically a treasury activity.