Question 1

If Vouchers Payable has been debited,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 service was provided on account. 
D) None of the above has occurred. 
A) the business took out a loan. 
B) the business made a payment to a vendor. 
C) a service was provided on account. 
D) None of the above has occurred.

Question 2

Supporting documents for a voucher system are:

Accepted Answer

A) filed in a tickler file. 
B) attached to the invoice. 
C) attached to the purchase order. 
D) attached to the voucher. 
A) filed in a tickler file. 
B) attached to the invoice. 
C) attached to the purchase order. 
D) attached to the voucher.

Question 3

Which of the following is not true of a voucher system?

Accepted Answer

A) All expenditures such as rent and interest would first be credited to Vouchers 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 receipts journal. 
D) Either A or B would be correct. 
A) All expenditures such as rent and interest would first be credited to Vouchers 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 receipts journal. 
D) Either A or B would be correct.

Question 4

Vouchers Payable replaces Accounts Payable in the general ledger.

Accepted Answer

A) True 
 B)False

Question 5

Important principles of internal control include:

Accepted Answer

A) that no payment can be made without an approved voucher. 
B) that all transactions are backed with documentation. 
C) separation of duties. 
D) All of these answers are correct. 
A) that no payment can be made without an approved voucher. 
B) that all transactions are backed with documentation. 
C) separation of duties. 
D) All of these answers are correct.

Question 6

Vouchers Payable is a liability account on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 7

The separation of duties among the employees of the accounting department is an example of a(n):

Accepted Answer

A) internal control system. 
B) document system. 
C) voucher system. 
D) check paying system. 
A) internal control system. 
B) document system. 
C) voucher system. 
D) check paying system.

Question 8

Given the following accounts:
[1]Cash in bank
[2]Petty cash
[3]Supplies
[4]Equipment
[5]Notes payable
[6]Vouchers payable
[7]FICA payable
[8]Wages payable
[9]Purchases
[10]Purchase discounts
[11]Discounts lost
[12]Repairs exp
[13]Interest expense
[14]Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
-Borrowed $4,000,signing a 5%,60 day promissory note.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Given the following accounts:
[1]Cash in bank
[2]Petty cash
[3]Supplies
[4]Equipment
[5]Notes...

Question 9

To maintain good internal control procedures,the person filing a purchase requisition should never approve the payment.

Accepted Answer

A) True 
 B)False

Question 10

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

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

Question 11

Alex returned all of the $1,000 purchase of equipment to James.The entry to record this is:

Accepted Answer

A)  $\begin{array}{|l|l|cc}
 \hline \text { Vouchers Payable } & \text { 1,000 }\
\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad Equipment } &\quad\quad\quad\quad\quad\quad1,000\
\hline
\end{array}$ 
B)  $\begin{array}{|l|l|cc}
 \hline \text { Equipment } & \text { 1,000 }\
\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad Vouchers Payable } &\quad\quad\quad\quad\quad\quad1,000\
\hline
\end{array}$ 
C)  $\begin{array}{|l|l|cc}
 \hline \text { Equipment } & \text { 1,000 }\
\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad  Accounts Payable  } &\quad\quad\quad\quad\quad\quad1,000\
\hline
\end{array}$ 
D) None of these answers are correct. 
A)  $\begin{array}{|l|l|cc}
 \hline \text { Vouchers Payable } & \text { 1,000 }\
\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad Equipment } &\quad\quad\quad\quad\quad\quad1,000\
\hline
\end{array}$ 
B)  $\begin{array}{|l|l|cc}
 \hline \text { Equipment } & \text { 1,000 }\
\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad Vouchers Payable } &\quad\quad\quad\quad\quad\quad1,000\
\hline
\end{array}$ 
C)  $\begin{array}{|l|l|cc}
 \hline \text { Equipment } & \text { 1,000 }\
\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad  Accounts Payable  } &\quad\quad\quad\quad\quad\quad1,000\
\hline
\end{array}$ 
D) None of these answers are correct.

Question 12

A cash discount of $24 taken under the net method approach is recorded in:

Accepted Answer

A) the check register. 
B) the voucher register. 
C) the general journal. 
D) None of these answers is correct. 
A) the check register. 
B) the voucher register. 
C) the general journal. 
D) None of these answers is correct.

Question 13

Given the following accounts:
[1]Cash in bank
[2]Petty cash
[3]Supplies
[4]Equipment
[5]Notes payable
[6]Vouchers payable
[7]FICA payable
[8]Wages payable
[9]Purchases
[10]Purchase discounts
[11]Discounts lost
[12]Repairs exp
[13]Interest expense
[14]Delivery expense
Indicate the account(s) to be debited and credited to record the following transactions.
-Paid voucher #425.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Given the following accounts:
[1]Cash in bank
[2]Petty cash
[3]Supplies
[4]Equipment
[5]Notes...

Question 14

The voucher register would contain a column for all except:

Accepted Answer

A) check numbers. 
B) Vouchers Payable credit. 
C) Cash credit. 
D) Purchases debit. 
A) check numbers. 
B) Vouchers Payable credit. 
C) Cash credit. 
D) Purchases debit.

Question 15

Unpaid vouchers are arranged by the due date in a tickler file.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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. 
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.

Question 17

Grant's Hardware bought $7,500 of merchandise,terms 3/10,n/30.The journal entry to record the transaction under the net approach method would be to:

Accepted Answer

A) debit Purchases $7,275; credit Accounts Payable $7,275. 
B) debit Purchases $7,275; credit Vouchers Payable $7,275. 
C) debit Purchases $7,500; credit Vouchers Payable $7,275; credit Discounts Lost $225. 
D) debit Purchases $7,500; credit Cash $7,500. 
A) debit Purchases $7,275; credit Accounts Payable $7,275. 
B) debit Purchases $7,275; credit Vouchers Payable $7,275. 
C) debit Purchases $7,500; credit Vouchers Payable $7,275; credit Discounts Lost $225. 
D) debit Purchases $7,500; credit Cash $7,500.

Question 18

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

Accepted Answer

A) check register. 
B) voucher register. 
C) back of the voucher. 
D) All of these answers are correct. 
A) check register. 
B) voucher register. 
C) back of the voucher. 
D) All of these answers are correct.

Question 19

Martin Corporation used the gross method of recording purchases.A purchase of $5,600,3/10,n30 would be recorded as:

Accepted Answer

A) debit Purchases $5,600; credit Accounts Payable $5,600. 
B) debit Purchases $5,600; credit Vouchers Payable $5,600. 
C) debit Purchases $5,432; credit Accounts Payable $5,432. 
D) debit Purchases $5,432; credit Vouchers Payable $5,432. 
A) debit Purchases $5,600; credit Accounts Payable $5,600. 
B) debit Purchases $5,600; credit Vouchers Payable $5,600. 
C) debit Purchases $5,432; credit Accounts Payable $5,432. 
D) debit Purchases $5,432; credit Vouchers Payable $5,432.

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

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

Supporting documents for a voucher system are:

Which of the following is not true of a voucher system?

Vouchers Payable replaces Accounts Payable in the general ledger.

Important principles of internal control include:

Vouchers Payable is a liability account on the balance sheet.

The separation of duties among the employees of the accounting department is an example of a(n):

To maintain good internal control procedures,the person filing a purchase requisition should never approve the payment.

Alex returned all of the $1,000 purchase of equipment to James.The entry to record this is:

A cash discount of $24 taken under the net method approach is recorded in:

The voucher register would contain a column for all except:

Unpaid vouchers are arranged by the due date in a tickler file.

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

Grant's Hardware bought $7,500 of merchandise,terms 3/10,n/30.The journal entry to record the transaction under the net approach method would be to:

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

Martin Corporation used the gross method of recording purchases.A purchase of $5,600,3/10,n30 would be recorded as:

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

Departmental Accounting

Manufacturing Accounting

Filters