Question 1

The check register is:

Accepted Answer

A) a special journal. 
B) used when paying out of petty cash. 
C) used to record customer receipts. 
D) used to house unpaid vouchers. 
A) a special journal. 
B) used when paying out of petty cash. 
C) used to record customer receipts. 
D) used to house unpaid vouchers. A

Question 2

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column } 4 \
\hline \text { Interest expense } & & & & \
\hline
\end{array}$$

Accepted Answer

$$\begin{array} { | l | l | l | r | r | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Interest expense } & \text { pxpense } & \text { debit } & \text { inc statement } & \text { temporary } \
\hline
\end{array}$$

Question 3

Vouchers are recorded in the voucher register at the time the liability is incurred.

Accepted Answer

A) True 
 B)False  True

Question 4

Written authorizations for cash payments are called vouchers.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) of requisition of goods. 
B) of receipt of goods. 
C) of order placement. 
D) the liability is incurred. 
A) of requisition of goods. 
B) of receipt of goods. 
C) of order placement. 
D) the liability is incurred.

Question 6

Martin Corporation used the gross method of recording purchases,the voucher system and the periodic inventory method.A purchase of $6,000,2/15,n30 would be recorded as:

Accepted Answer

A) debit Purchases $6,000;credit Accounts Payable $6,000. 
B) debit Purchases $6,000;credit Vouchers Payable $6,000. 
C) debit Purchases $5,880;credit Accounts Payable $5,880. 
D) debit Purchases $5,880;credit Vouchers Payable $5,880. 
A) debit Purchases $6,000;credit Accounts Payable $6,000. 
B) debit Purchases $6,000;credit Vouchers Payable $6,000. 
C) debit Purchases $5,880;credit Accounts Payable $5,880. 
D) debit Purchases $5,880;credit Vouchers Payable $5,880.

Question 7

The primary difference between the gross method and the net method of recording invoices is:

Accepted Answer

A) when the invoice is paid. 
B) when the discount is recognized. 
C) the gross method is only used when there are no discounts available. 
D) the net method does not use a voucher system. 
A) when the invoice is paid. 
B) when the discount is recognized. 
C) the gross method is only used when there are no discounts available. 
D) the net method does not use a voucher system.

Question 8

Which of the following is the controlling account in the general ledger when using a voucher system?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Accounts Receivable 
D) Vouchers Payable 
A) Cash 
B) Accounts Payable 
C) Accounts Receivable 
D) Vouchers Payable

Question 9

The company uses the periodic inventory system and the voucher system.If the net method is applied,the purchase of $3,000 of merchandise with terms 2/10,n/30 is recorded by:

Accepted Answer

A) debit Cash $3,000;credit Accounts Payable $3,000. 
B) debit Accounts Payable $3,000;credit Purchases $3,000. 
C) debit Purchases $3,000;credit Accounts Payable $3,000. 
D) debit Purchases $2,940;credit Vouchers Payable $2,940. 
A) debit Cash $3,000;credit Accounts Payable $3,000. 
B) debit Accounts Payable $3,000;credit Purchases $3,000. 
C) debit Purchases $3,000;credit Accounts Payable $3,000. 
D) debit Purchases $2,940;credit Vouchers Payable $2,940.

Question 10

Fox Company uses a voucher system and the periodic inventory method.The following transactions were completed:
   
Required: Prepare journal entries to record the above transactions.Assume Fox Company uses the gross method for recording purchases.Omit explanations.

Accepted Answer

The answer of Fox Company uses a voucher system and...

Question 11

The entry to record the incurrence of an expense will include:

Accepted Answer

A) a debit to Capital and a credit to Cash. 
B) a debit to the expense and a credit to Vouchers Payable. 
C) a debit to the expense and a credit to Accounts Payable. 
D) a debit to Vouchers Payable and a credit to the expense. 
A) a debit to Capital and a credit to Cash. 
B) a debit to the expense and a credit to Vouchers Payable. 
C) a debit to the expense and a credit to Accounts Payable. 
D) a debit to Vouchers Payable and a credit to the expense.

Question 12

On June 2,Sandoval Corporation purchased $9,000 of merchandise from Johnston Company,terms 3/10,n/30 and prepared voucher #402.Sandoval returned $400 of the supplies on June 8,because of poor quality.Sandoval cancelled voucher #402 and replaced it with #415.
Required: Prepare journal entries to record the above transactions.Assume Sandoval uses the net method for recording purchases.Omit explanations.Sandoval uses the periodic method.

Accepted Answer

The answer of On June 2,Sandoval Corporation purchased $9,000 of...

Question 13

Vouchers Payable is a liability account on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

After paying a voucher,the voucher document is marked paid.

Accepted Answer

A) True 
 B)False

Question 15

If an account is not paid on time using the net method,the account ________ must be recorded.

Accepted Answer

The answer of If an account is not paid on...

Question 16

A schedule of vouchers payable is prepared from the unpaid voucher file.

Accepted Answer

A) True 
 B)False

Question 17

Toy Trains Company bought $8,000 of merchandise,terms 2/10,n/30.The company uses the periodic inventory system and the voucher system.The journal entry to record the transaction under the net method would be to:

Accepted Answer

A) debit Purchases $7,840;credit Accounts Payable $7,840. 
B) debit Purchases $8,000;credit Vouchers Payable $8,000. 
C) debit Purchases $8,000;credit Vouchers Payable $7,840;credit Discounts Lost $160. 
D) debit Purchases $7,840;credit Vouchers Payable $7,840. 
A) debit Purchases $7,840;credit Accounts Payable $7,840. 
B) debit Purchases $8,000;credit Vouchers Payable $8,000. 
C) debit Purchases $8,000;credit Vouchers Payable $7,840;credit Discounts Lost $160. 
D) debit Purchases $7,840;credit Vouchers Payable $7,840.

Question 18

Vouchers should be filed in the tickler file ________ rather than alphabetically.

Accepted Answer

chronologi

Question 19

Which of the following is true of a voucher system?

Accepted Answer

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. 
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.

Question 20

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column } 4 \
\hline \text { Notes Payable } & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Exam 23: The Voucher System

The check register is:

Vouchers are recorded in the voucher register at the time the liability is incurred.

Written authorizations for cash payments are called vouchers.

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

Martin Corporation used the gross method of recording purchases,the voucher system and the periodic inventory method.A purchase of $6,000,2/15,n30 would be recorded as:

The primary difference between the gross method and the net method of recording invoices is:

Which of the following is the controlling account in the general ledger when using a voucher system?

The company uses the periodic inventory system and the voucher system.If the net method is applied,the purchase of $3,000 of merchandise with terms 2/10,n/30 is recorded by:

Fox Company uses a voucher system and the periodic inventory method.The following transactions were completed: Required: Prepare journal entries to record the above transactions.Assume Fox Company uses the gross method for recording purchases.Omit explanations.

The entry to record the incurrence of an expense will include:

Vouchers Payable is a liability account on the balance sheet.

After paying a voucher,the voucher document is marked paid.

If an account is not paid on time using the net method,the account ________ must be recorded.

A schedule of vouchers payable is prepared from the unpaid voucher file.

Toy Trains Company bought $8,000 of merchandise,terms 2/10,n/30.The company uses the periodic inventory system and the voucher system.The journal entry to record the transaction under the net method would be to:

Vouchers should be filed in the tickler file ________ rather than alphabetically.

Which of the following is true of a voucher system?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

Departmental Accounting

Manufacturing Accounting

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