Question 1

The voucher register would contain a column for:
A)Date of Payment.
B)Vouchers Payable credit.
C)Voucher Number.
D)Purchases credit.

Accepted Answer

The answer of The voucher register would contain a column...

Question 2

The voucher register in a voucher system is known as the:
A)book of final entry.
B)book of original entry.
C)book of vouchers.
D)voucher journal.

Accepted Answer

The voucher register is considered the book of original entry where transactions are first recorded before being posted to the ledger.

Question 3

Important control features provided by a voucher system:
A)assure only approved invoices are paid.
B)centralize the recording of all expenditures in one place-the voucher register.
C)include using the check register along with the voucher register.
D)All of these answers are correct.

Accepted Answer

All of the given options are important control features provided by a voucher system. They help to ensure that only approved invoices are paid, all expenditures are recorded in one central place, and the check register is used in conjunction with the voucher register to further control spending.

Question 4

Before a voucher is approved for payment,all documents must be in agreement,except for the:
A)accounts receivable ledger.
B)invoice.
C)purchase order.
D)receiving report.

Accepted Answer

The accounts receivable ledger is not relevant to the approval of a voucher for payment, as it pertains to money owed to the company rather than expenses incurred by the company. All other documents listed (invoice, purchase order, receiving report) must be in agreement for a voucher to be approved for payment.

Question 5

Which of the following business documents would originate with the selling company?
A)Purchase requisition
B)Check for payment
C)Sales invoice
D)Receiving report

Accepted Answer

Sales invoice is a document that originates with the selling company and is sent to the purchasing company to request payment for goods or services sold. The purchase requisition, receiving report, and check for payment all originate with the purchasing company.

Question 6

Under a voucher system,every liability is recorded at the time:
A)of requisition of goods.
B)of receipt of goods.
C)of order placement.
D)the liability is incurred.

Accepted Answer

Under a voucher system, every liability is recorded at the time the liability is incurred.

Question 7

The company receiving a purchase order prepares a:
A)purchase requisition.
B)voucher.
C)purchases invoice.
D)sales invoice.

Accepted Answer

The company receiving a purchase order prepares a sales invoice to bill the buyer for the goods or services provided.

Question 8

Each entry in a voucher register includes a:
A)debit to Cash.
B)credit to Vouchers Payable.
C)debit to Purchases Discounts.
D)debit to Vouchers Payable.

Accepted Answer

Each entry in a voucher register typically includes a credit to Vouchers Payable, as it records the liability incurred from a purchase or expense.

Question 9

Using the gross method,record the payment of the following transaction in time to take the discount.Connect Company bought $5,000 of merchandise,terms 2/10,n/30,and uses the periodic inventory system:
A)debit Cash $5,000;credit Vouchers Payable $5,000.
B)debit Vouchers Payable $5,000;credit Cash $4,900;credit Purchases Discount $100.
C)debit Vouchers Payable $4,900;credit Cash $4,900.
D)debit Vouchers Payable $5,000;credit Cash $5,000.

Accepted Answer

The gross method records the entire amount of the invoice initially, and then deducts the discount if payment is made within the discount period. Therefore, the transaction should be recorded as a debit to Vouchers Payable for the gross amount of $5,000, a credit to Cash for the discounted amount of $4,900, and a credit to Purchases Discount for the amount of the discount, which is $100.

Question 10

On the balance sheet,Vouchers Payable would be:
A)a special liability account.
B)an asset account.
C)renamed as Accounts Payable.
D)shown as long-term liabilities.

Accepted Answer

The answer of On the balance sheet,Vouchers Payable would be:
A)a...

Question 11

After payment is made,a notation is made on the:
A)check register.
B)voucher register.
C)back of the voucher.
D)All of these answers are correct.

Accepted Answer

After payment is made, a notation is made on all of these documents - check register, voucher register, and on the back of the voucher to keep all records up to date and accurate.

Question 12

Which of the following statements is false as it pertains to a voucher system?
A)The purchase order must be completed and approved before the goods are purchased.
B)A receiving report is completed when goods are received and is checked against the purchase order.
C)Someone in the receiving department checks the purchase order and sales invoice for accuracy.
D)After all the steps are complete,payment is issued in the form of a check.

Accepted Answer

In a voucher system, someone in the accounts payable department checks the purchase order and sales invoice for accuracy, not someone in the receiving department.

Question 13

Using the gross method,record the payment of the following transaction in time to take the discount.Clip Company bought $7,000 of merchandise,terms 1/15,n/45.The company uses the voucher system and the periodic inventory method.
A)debit Cash $7,000;credit Vouchers Payable $7,000.
B)debit Vouchers Payable $7,000;credit Cash $6,930;credit Purchases Discount $70.
C)debit Vouchers Payable $6,930;credit Cash $6,930.
D)debit Vouchers Payable $7,000;credit Cash $7,000.

Accepted Answer

The gross method means that purchases are recorded at the full invoice amount, without taking any discounts. Therefore, we will initially record the purchase of $7,000 by debiting Purchases and crediting Vouchers Payable. When the payment is made within the discount period, we will debit Vouchers Payable for the full amount of $7,000 and credit Cash for the discounted amount of $6,930. We will also credit Purchases Discount for the discount amount of $70. Therefore, B is the correct answer.

Question 14

Connect Company bought $6,000 of merchandise from Woods Corporation,terms 2/10,n/30.Connect Company uses the voucher system and the periodic inventory method.The journal entry to record the payment under the gross method after the discount period would be to:
A)debit Vouchers Payable $6,000;credit Cash $6,000.
B)debit Vouchers Payable $6,000;credit Purchases Discount $120;credit Cash $5,880.
C)debit Vouchers Payable $5,880;credit Cash $5,880.
D)debit Vouchers Payable $5,880;debit Purchases Discount $120;credit Cash $6,000.

Accepted Answer

Since the payment is made after the discount period, Connect Company must pay the full amount of $6,000. Therefore, the entry is to debit Vouchers Payable for $6,000 and credit Cash for $6,000.

Question 15

Which of the following is true of a voucher system?
A)All expenditures such as rent and interest would first be credited to Accounts Payable before payment is made.
B)Transactions are first entered in the voucher register,then payment is made in the voucher register.
C)The check register replaces the cash payments journal.
D)Either A or B would be correct.

Accepted Answer

The answer of Which of the following is true of...

Question 16

Clip Company bought $7,500 of merchandise from Tarpon Corporation,terms 1/10,n/45.Clip Company uses the voucher system and the periodic inventory method.The journal entry to record the payment under the gross method after the discount period would be to:
A)debit Vouchers Payable $7,500;credit Cash $7,500.
B)debit Vouchers Payable $7,500;credit Purchases Discount $75;credit Cash $7,425.
C)debit Vouchers Payable $7,425;credit Cash $7,425.
D)debit Vouchers Payable $7,425;debit Purchases Discount $75;credit Cash $7,500.

Accepted Answer

The payment is made after the discount period, so the full amount of $7,500 is due.

Question 17

Which of the following sequences of events is in the correct order for a voucher system?
A)Recording,preparing,posting,and paying the voucher
B)Posting,preparing,paying,and recording the voucher
C)Preparing,paying,posting,and recording the voucher
D)None of the above is the correct order.

Accepted Answer

The correct sequence for a voucher system typically involves preparing the voucher, recording it in the journal, posting it to the ledger, and then paying the voucher. None of the options provided follow this sequence accurately.

Question 18

The voucher system strengthens internal control because:
A)all the duties of preparing a voucher and the receiving reports are assigned to a single person.
B)certain payments,which are made on a regular basis,such as monthly rent payments,do not need to be vouchered.
C)the employee who approves all vouchers then sends the approved vouchers to others who prepare the voucher register and the check register.
D)All of these answers are correct.

Accepted Answer

The voucher system strengthens internal control by separating duties among different employees, which reduces the risk of errors or fraud. In option C, the separation of duties between the employee who approves vouchers and those who prepare the voucher and check registers is a key aspect of internal control.

Question 19

The check register would contain a column for all except:
A)a credit to Vouchers Payable.
B)a debit to Vouchers Payable.
C)a debit to Cash.
D)a debit to Purchases Discount.

Accepted Answer

The answer of The check register would contain a column...

Question 20

Which of the following accounts is used for recording merchandise for resale?
A)Purchases
B)Purchase Discounts
C)Purchase Discounts Lost
D)Sales

Accepted Answer

The Purchases account is used for recording merchandise that is bought for resale.

Quiz 23: The Voucher System

The voucher register would contain a column for:

The voucher register in a voucher system is known as the:

Important control features provided by a voucher system:

Before a voucher is approved for payment,all documents must be in agreement,except for the:

Which of the following business documents would originate with the selling company?

Under a voucher system,every liability is recorded at the time:

The company receiving a purchase order prepares a:

Each entry in a voucher register includes a:

Using the gross method,record the payment of the following transaction in time to take the discount.Connect Company bought $5,000 of merchandise,terms 2/10,n/30,and uses the periodic inventory system:

On the balance sheet,Vouchers Payable would be:

After payment is made,a notation is made on the:

Which of the following statements is false as it pertains to a voucher system?

Using the gross method,record the payment of the following transaction in time to take the discount.Clip Company bought $7,000 of merchandise,terms 1/15,n/45.The company uses the voucher system and the periodic inventory method.

Connect Company bought $6,000 of merchandise from Woods Corporation,terms 2/10,n/30.Connect Company uses the voucher system and the periodic inventory method.The journal entry to record the payment under the gross method after the discount period would be to:

Which of the following is true of a voucher system?

Clip Company bought $7,500 of merchandise from Tarpon Corporation,terms 1/10,n/45.Clip Company uses the voucher system and the periodic inventory method.The journal entry to record the payment under the gross method after the discount period would be to:

Which of the following sequences of events is in the correct order for a voucher system?

The voucher system strengthens internal control because:

The check register would contain a column for all except:

Which of the following accounts is used for recording merchandise for resale?