Question 1

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

Accepted Answer

The false statement is C because in a voucher system, the receiving department typically checks the goods received against the purchase order and receiving report for accuracy, not the purchase order and sales invoice. The sales invoice is usually checked by the accounting or finance department against the purchase order and receiving report to ensure accuracy before payment is processed.

Question 2

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

Accepted Answer

The dividend journal is unrelated to the process of approving a voucher for payment, which typically involves matching the invoice, purchase order, and receiving report to ensure that what was ordered, received, and billed aligns. The dividend journal, which records dividends paid by a company, is not part of this process.

Question 3

The check register would contain a column for all except:

Accepted Answer

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

Question 4

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

Accepted Answer

The Purchases account is used to record the cost of merchandise bought for resale during the accounting period. It is a temporary account that directly impacts the cost of goods sold and inventory levels.

Question 5

Each entry in a voucher register includes a:

Accepted Answer

Each entry in a voucher register typically includes a credit to Vouchers Payable, as it records the obligation to pay a vendor.

Question 6

Clip Company bought $11,000 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:

Accepted Answer

Under the gross method, the purchase is recorded at its full amount, and if the payment is made after the discount period, the full amount is paid. Therefore, the entry is to debit Vouchers Payable for $11,000 and credit Cash for $11,000, reflecting the payment of the full invoice amount without taking any discount.

Question 7

The voucher register would contain a column for all except:

Accepted Answer

The voucher register typically includes columns for the date of payment, vouchers payable credit, and voucher number to track and manage payments. However, it does not include a column for purchases credit, as this would be recorded in the purchases journal or ledger, not in the voucher register. The voucher register is focused on the recording of vouchers and their payment, not the recording of credit purchases.

Question 8

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

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 9

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

Accepted Answer

The voucher register in a voucher system is known as the book of original entry because it is the first place where voucher transactions are recorded.

Question 10

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

Accepted Answer

The correct answer is B because it reflects the payment within the discount period, taking advantage of the 1% discount on the $15,000 purchase, which amounts to $150. Therefore, $14,850 is paid in cash, and the $150 discount is recorded as a Purchases Discount.

Question 11

Using the gross method, record the payment of the following transaction in time to take the discount. Connect Company bought $8,000 of merchandise, terms 2/10, n/30, and uses the periodic inventory system.

Accepted Answer

The correct entry to record the payment within the discount period under the gross method is to debit Vouchers Payable for the full amount of the invoice ($8,000), credit Cash for the amount paid after taking the discount ($7,840), and credit Purchases Discount for the amount of the discount taken ($160). This reflects the reduction in the payment due to the 2% discount on the $8,000 purchase, which amounts to $160 ($8,000 x 2% = $160), making the actual cash payment $7,840 ($8,000 - $160 = $7,840).

Question 12

On the balance sheet, Vouchers Payable would be:

Accepted Answer

The answer of On the balance sheet, Vouchers Payable would...

Question 13

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

Accepted Answer

Under a voucher system, liabilities are recorded when they are incurred, ensuring accurate and timely financial reporting. This method helps in tracking expenses and obligations as they happen, rather than at the time of payment or goods receipt.

Question 14

Important control features provided by a voucher system do NOT include:

Accepted Answer

A voucher system does not assure that all invoices are paid; it ensures that only approved invoices are paid and recorded properly.

Question 15

Which of the following is true of a voucher system?

Accepted Answer

A voucher system uses a check register to record payments, replacing the traditional cash payments journal.

Question 16

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

Accepted Answer

A sales invoice is a document that a seller issues to a buyer, detailing the sale transaction and requesting payment. This document originates from the selling company, unlike the other options which are typically generated by the buying company or relate to payment processes.

Question 17

Connect Company bought $13,000 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:

Accepted Answer

Under the gross method, the purchase is initially recorded at its gross amount. If the payment is made after the discount period, the full amount is paid without taking any discount. Therefore, the entry is to debit Vouchers Payable for $13,000 and credit Cash for $13,000.

Question 18

The company receiving a purchase order prepares a:

Accepted Answer

The company receiving a purchase order prepares a sales invoice to request payment from the buyer for the goods ordered.

Question 19

The voucher system strengthens internal control because:

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 20

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

Accepted Answer

After payment is made, notations are typically made on all these records: the check register (to record the payment), the voucher register (to update the status of the voucher), and the back of the voucher (often to indicate payment details such as date and check number). This ensures accurate tracking and reconciliation of payments.

Quiz 23: The Voucher System