Why are cheque requisitions commonly utilized?

Cheque requisitions are typically utilized to streamline the process of requesting payments for expenses incurred. This process allows organizations to manage and control their expenses systematically, ensuring that reimbursements are only made for justifiable costs.

When individuals within an organization incur expenses that exceed a particular limit, a cheque requisition serves as formal documentation that must be approved before payment can be issued. This requirement facilitates accountability and oversight, as approval from management often ensures that the expenses are legitimate and align with company policies.

This formalized process also aids in record-keeping, as each requisition can be tracked and referenced in financial practices. In contrast, the other choices do not align with the primary purpose of cheque requisitions, which are focused on reimbursement mechanisms and maintaining expenditure control rather than servicing other functions like tracking supplies or managing payments directly.