The cash disbursements system processes the payment of obligations created in the purchases system.Select one:TrueFalse

The statement is True.

Explanation:

In an accounting system, particularly within the context of a business's financial management, the cash disbursements system is indeed responsible for processing the payments of obligations that arise from the purchases system.

When a company makes purchases, it incurs obligations to pay its suppliers or vendors for the goods and services acquired. These obligations are recorded in the purchases system, which tracks what has been bought and the terms of payment.

Once the time to pay arrives, or when the payment is initiated, the cash disbursements system takes over. It handles the actual transfer of cash or funds to settle these obligations. This function is crucial in managing cash flow effectively and ensuring that the company meets its financial liabilities on time, which is essential for maintaining good supplier relations and operational stability.

Thus, the cash disbursements system directly relates to the purchases made by the organization and is a vital part of the overall accounting and finance function within the company.