Records for funds DISBURSED must include which items?

• A. Date of payment; Check number; Name of payee; Reference to vendor documentation verifying purpose for payment; Amount paid; Resulting cash balance for account
• B. Date of payment; Amount; Payee; Purpose
• C. Date of withdrawal; Merchant name; Amount
• D. Date of payment; Check number; Bank name; Amount

Answer: (A)

When funds are disbursed, records must capture enough detail to fully trace the transaction and verify its purpose. The best choice includes the date of payment, the check number, the name of the payee, a reference to vendor documentation that verifies the payment’s purpose, the amount paid, and the resulting cash balance for the account. Each item serves a clear role: the date shows when the disbursement occurred; the check number links the record to the actual instrument used; the payee identifies who was paid; the vendor documentation provides proof of why the payment was made; the amount records the money moved; and the resulting balance shows the account’s position after the disbursement, supporting reconciliation and compliance.

The other options miss essential pieces. One lacks the check number, vendor documentation, and the resulting balance, making it hard to verify the disbursement and reconcile the account. Another uses a withdrawal concept and omits the check number, purpose, and balance. The last option includes the date, check number, bank name, and amount but leaves out the payment purpose and supporting documentation, which are crucial for proving why the payment was made and for audit trails.