Question 1

If Vouchers Payable has been credited, it is most likely that:

Accepted Answer

A)  the business took out a loan. 
B)  the business made a payment to a vendor. 
C)  a purchase was made on account. 
D)  a cash receipt from a customer. 
A)  the business took out a loan. 
B)  the business made a payment to a vendor. 
C)  a purchase was made on account. 
D)  a cash receipt from a customer.

Question 2

On May 1, Garcia Corporation bought $11,000 of merchandise from Morris Corporation, terms 4/10, n/30. Garcia paid the invoice on May 6. The company uses the periodic and voucher system. The journal entry to record the payment under the net method would be to:

Accepted Answer

A)  debit Vouchers Payable $11,000; credit Cash $11,000. 
B)  debit Vouchers Payable $11,000; credit Discounts Lost $440; credit Cash $10,560. 
C)  debit Vouchers Payable $10,560; credit Cash $10,560. 
D)  debit Vouchers Payable $10,560; debit Discounts Lost $440; credit Cash $11,000. 
A)  debit Vouchers Payable $11,000; credit Cash $11,000. 
B)  debit Vouchers Payable $11,000; credit Discounts Lost $440; credit Cash $10,560. 
C)  debit Vouchers Payable $10,560; credit Cash $10,560. 
D)  debit Vouchers Payable $10,560; debit Discounts Lost $440; credit Cash $11,000.

Question 3

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).
-

Accepted Answer

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

Question 4

The entry to record the approval of a withdrawal by the owner will include:

Accepted Answer

A)  a debit to Wages Expense and a credit to Vouchers Payable. 
B)  a debit to Vouchers Payable and a credit to Wages Expense. 
C)  a debit to Withdrawals and a credit to Vouchers Payable. 
D)  a debit to Vouchers Payable and a credit to Withdrawals. 
A)  a debit to Wages Expense and a credit to Vouchers Payable. 
B)  a debit to Vouchers Payable and a credit to Wages Expense. 
C)  a debit to Withdrawals and a credit to Vouchers Payable. 
D)  a debit to Vouchers Payable and a credit to Withdrawals.

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

Question 6

Vouchers Payable replaces Accounts Payable in the general ledger.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  a debit to expense 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 expense 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 8

The voucher system strengthens internal control because:

Accepted Answer

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. 
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.

Question 9

Grant's Hardware bought $12,000 of merchandise, terms 1/10, n/30. The company uses the periodic inventory system and the voucher system. The journal entry to record the transaction under the net approach method would be to:

Accepted Answer

A)  debit Purchases $11,880; credit Accounts Payable $11,880. 
B)  debit Purchases $11,880; credit Vouchers Payable $11,880. 
C)  debit Purchases $12,000; credit Vouchers Payable $11,880; credit Discounts Lost $120. 
D)  debit Purchases $12,000; credit Cash $12,000. 
A)  debit Purchases $11,880; credit Accounts Payable $11,880. 
B)  debit Purchases $11,880; credit Vouchers Payable $11,880. 
C)  debit Purchases $12,000; credit Vouchers Payable $11,880; credit Discounts Lost $120. 
D)  debit Purchases $12,000; credit Cash $12,000.

Question 10

The company receiving a purchase order prepares a:

Accepted Answer

A)  purchase requisition. 
B)  debit memo. 
C)  purchases invoice. 
D)  sales invoice. 
A)  purchase requisition. 
B)  debit memo. 
C)  purchases invoice. 
D)  sales invoice.

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

A)  Debit Cash $8,000; credit Vouchers Payable $8,000. 
B)  Debit Vouchers Payable $8,000; credit Cash $7,840; credit Purchases Discount $160. 
C)  Debit Vouchers Payable $7,840; credit Cash $7,840. 
D)  Debit Vouchers Payable $8,000; credit Cash $8,000. 
A)  Debit Cash $8,000; credit Vouchers Payable $8,000. 
B)  Debit Vouchers Payable $8,000; credit Cash $7,840; credit Purchases Discount $160. 
C)  Debit Vouchers Payable $7,840; credit Cash $7,840. 
D)  Debit Vouchers Payable $8,000; credit Cash $8,000.

Question 12

If partial payment is made and installment payments are set up after the voucher is prepared for the total amount owed:

Accepted Answer

A)  the old voucher is cancelled and a new voucher is prepared for the new amount owed. 
B)  the old voucher is credited for the entire amount. 
C)  Vouchers Payable is debited; Purchases Returns and Allowances is credited. 
D)  None of these answers is correct. 
A)  the old voucher is cancelled and a new voucher is prepared for the new amount owed. 
B)  the old voucher is credited for the entire amount. 
C)  Vouchers Payable is debited; Purchases Returns and Allowances is credited. 
D)  None of these answers is correct.

Question 13

Given the following accounts:
-Paid voucher #424.
Debit ________ Credit ________

Accepted Answer

A) Cash in bank 
B) Petty cash 
C) Supplies 
D) Equipment 
E) Notes payable
F)Vouchers payable
G)FICA payable
H)Wages payable
I)Purchases
J)Purchase discounts
K)Discounts lost
L)Repairs expense
M)Interest expense
N)Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
The company uses the periodic inventory method. 
A) Cash in bank 
B) Petty cash 
C) Supplies 
D) Equipment 
E) Notes payable
F)Vouchers payable
G)FICA payable
H)Wages payable
I)Purchases
J)Purchase discounts
K)Discounts lost
L)Repairs expense
M)Interest expense
N)Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
The company uses the periodic inventory method.

Question 14

Peet Company uses a voucher system and the periodic inventory method. The following transactions were completed:
May 3 Purchased $7,000 of merchandise; terms 2/10, n/30.
Prepared voucher #205.
May 13 Paid voucher #205.
Required: Prepare journal entries to record the above transactions. Assume Peet Company uses the gross method for recording purchases. Omit explanations.

Accepted Answer

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

Question 15

In a voucher system, a schedule of vouchers payable is the same as a schedule of accounts payable.

Accepted Answer

A) True 
 B)False

Question 16

Important principles of internal control include:

Accepted Answer

A)  that payment can be made without an approved voucher. 
B)  that all transactions are backed with documentation. 
C)  no separation of duties. 
D)  all accounting staff have the same start time. 
A)  that payment can be made without an approved voucher. 
B)  that all transactions are backed with documentation. 
C)  no separation of duties. 
D)  all accounting staff have the same start time.

Question 17

The entry to record payment of a voucher for an invoice within the discount period under the gross method will include:

Accepted Answer

A)  a debit to Purchase Discounts. 
B)  a credit to Purchase Discounts. 
C)  a debit to Cash. 
D)  Both B and C would be in the entry. 
A)  a debit to Purchase Discounts. 
B)  a credit to Purchase Discounts. 
C)  a debit to Cash. 
D)  Both B and C would be in the entry.

Question 18

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).
-

Accepted Answer

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

Question 19

Steel Company completed the following transactions:
May 10 Prepared voucher #301 for purchase of merchandise for $5,000 from Sweet Company
12 Returned $800 of the merchandise purchased from Sweet because of poor quality.
Cancelled voucher #301 and replaced it with voucher #305.
Required: Prepare journal entries to record the above transactions. Assume Steel uses the gross method for recording purchases. Omit explanations. Steel uses the periodic method.

Accepted Answer

The answer of Steel Company completed the following transactions:
May 10...

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).
-

Accepted Answer

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

Exam 23: The Voucher System

If Vouchers Payable has been credited, it is most likely that:

On May 1, Garcia Corporation bought $11,000 of merchandise from Morris Corporation, terms 4/10, n/30. Garcia paid the invoice on May 6. The company uses the periodic and voucher system. The journal entry to record the payment under the net method would be to:

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). -

The entry to record the approval of a withdrawal by the owner will include:

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

Vouchers Payable replaces Accounts Payable in the general ledger.

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

The voucher system strengthens internal control because:

Grant's Hardware bought $12,000 of merchandise, terms 1/10, n/30. The company uses the periodic inventory system and the voucher system. The journal entry to record the transaction under the net approach method would be to:

The company receiving a purchase order prepares a:

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.

If partial payment is made and installment payments are set up after the voucher is prepared for the total amount owed:

Given the following accounts: -Paid voucher #424. Debit ________ Credit ________

In a voucher system, a schedule of vouchers payable is the same as a schedule of accounts payable.

Important principles of internal control include:

The entry to record payment of a voucher for an invoice within the discount period under the gross method will include:

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). -

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). -

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

Filters

Given the following accounts: -Paid voucher #424. Debit Credit