Question 1

If the net approach method is applied, the purchase of $2,000 of merchandise with terms 2/10, n/30 is recorded by:

Accepted Answer

A) debit Cash $2,000; credit Accounts Payable $2,000. 
B) debit Accounts Payable $2,000; credit Purchases $2,000. 
C) debit Purchases $2,000; credit Accounts Payable $2,000. 
D) debit Purchases $1,960; credit Vouchers Payable $1,960. 
A) debit Cash $2,000; credit Accounts Payable $2,000. 
B) debit Accounts Payable $2,000; credit Purchases $2,000. 
C) debit Purchases $2,000; credit Accounts Payable $2,000. 
D) debit Purchases $1,960; credit Vouchers Payable $1,960. D

Question 2

When a voucher is prepared, the invoice needs only to be compared to the purchase requisition and purchase order.

Accepted Answer

A) True 
 B)False  False

Question 3

A voucher is made for every:

Accepted Answer

A) cash receipt. 
B) cash payment. 
C) accounts payable transaction. 
D) accounts receivable transaction. 
A) cash receipt. 
B) cash payment. 
C) accounts payable transaction. 
D) accounts receivable transaction. B

Question 4

Which situation would not result in a separation of duties?

Accepted Answer

A) The person who approves purchases does not make the payments. 
B) The person who makes journal entries is the same as the person who signs and mails checks. 
C) The person who makes purchases is different from the one who approves the purchase. 
D) The person who distributes paychecks does not make journal entries. 
A) The person who approves purchases does not make the payments. 
B) The person who makes journal entries is the same as the person who signs and mails checks. 
C) The person who makes purchases is different from the one who approves the purchase. 
D) The person who distributes paychecks does not make journal entries.

Question 5

Using the voucher system when paying an invoice within the discount period, assuming the gross method, the entry would be to debit Vouchers Payable, credit Purchases Discount, and credit Cash.

Accepted Answer

A) True 
 B)False

Question 6

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Prepared voucher #424 in the amount of $6,240 in reply to the payroll department's request for payment of last week's wages.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Given the following accounts:
   Indicate...

Question 7

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 8

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Paid voucher #425, payment was after the discount period.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

Debit 6 &

Question 9

After Crowe purchased $5,000 of merchandise from Hanks, Crowe discovered $400 of defective merchandise. Record the entry for the return (assume the gross method).

Accepted Answer

A)    
B)    
C)    
D) None of these answers are correct. 
A)    
B)    
C)    
D) None of these answers are correct.

Question 10

A tickler file is the same as the:

Accepted Answer

A) accounts receivable file. 
B) accounts payable file. 
C) paid vouchers file. 
D) unpaid vouchers file. 
A) accounts receivable file. 
B) accounts payable file. 
C) paid vouchers file. 
D) unpaid vouchers file.

Question 11

Vouchers are recorded in the voucher register as they are paid.

Accepted Answer

A) True 
 B)False

Question 12

Given the following accounts:
   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:
   Indicate...

Question 13

A voucher register could contain which of the following columns?

Accepted Answer

A) Debit to Vouchers Payable 
B) Credit to Purchases 
C) Debit or credit to sundry accounts 
D) A credit to an expense account 
A) Debit to Vouchers Payable 
B) Credit to Purchases 
C) Debit or credit to sundry accounts 
D) A credit to an expense account

Question 14

Spice Company completed the following transactions:
   Required: Prepare journal entries to record the above transactions. Assume Spice uses the gross approach method for recording purchases. Omit explanations.

Accepted Answer

The answer of Spice Company completed the following transactions:
 ...

Question 15

When a purchase is made, the business will:

Accepted Answer

A) credit Vouchers Payable. 
B) enter a voucher in the voucher register. 
C) debit Purchases. 
D) All of the above. 
A) credit Vouchers Payable. 
B) enter a voucher in the voucher register. 
C) debit Purchases. 
D) All of the above.

Question 16

Brooke's Company purchased $1,500 of merchandise with terms of 2/10, n/30 and paid the invoice within the discount period. If Brooke's uses the net method of recording merchandise purchases, the $30 purchases discount is recorded in:

Accepted Answer

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

Question 17

Name and discuss the two most important internal control principles embedded in the voucher system.

Accepted Answer

The most important principle is the sepa

Question 18

In a voucher system, the controlling account in the general ledger is:

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 19

A company uses the gross method of recording purchases. An invoice was paid after the discount date. The full amount of the invoice would be recorded in the:

Accepted Answer

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

Question 20

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Paid voucher #422, payment was within the discount period.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

Debit 6, C

Exam 23: The Voucher System

If the net approach method is applied, the purchase of $2,000 of merchandise with terms 2/10, n/30 is recorded by:

When a voucher is prepared, the invoice needs only to be compared to the purchase requisition and purchase order.

A voucher is made for every:

Which situation would not result in a separation of duties?

Using the voucher system when paying an invoice within the discount period, assuming the gross method, the entry would be to debit Vouchers Payable, credit Purchases Discount, and credit Cash.

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

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid voucher #425, payment was after the discount period. Debit ________ & ________ & ________ Credit ________ & ________ & ________

After Crowe purchased $5,000 of merchandise from Hanks, Crowe discovered $400 of defective merchandise. Record the entry for the return (assume the gross method).

A tickler file is the same as the:

Vouchers are recorded in the voucher register as they are paid.

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid voucher #425. Debit ________ & ________ & ________ Credit ________ & ________ & ________

A voucher register could contain which of the following columns?

Spice Company completed the following transactions: Required: Prepare journal entries to record the above transactions. Assume Spice uses the gross approach method for recording purchases. Omit explanations.

When a purchase is made, the business will:

Brooke's Company purchased $1,500 of merchandise with terms of 2/10, n/30 and paid the invoice within the discount period. If Brooke's uses the net method of recording merchandise purchases, the $30 purchases discount is recorded in:

Name and discuss the two most important internal control principles embedded in the voucher system.

In a voucher system, the controlling account in the general ledger is:

A company uses the gross method of recording purchases. An invoice was paid after the discount date. The full amount of the invoice would be recorded in the:

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid voucher #422, payment was within the discount period. Debit ________ & ________ & ________ Credit ________ & ________ & ________

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

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid voucher #425, payment was after the discount period. Debit & & Credit & &

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid voucher #425. Debit & & Credit & &

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid voucher #422, payment was within the discount period. Debit & & Credit & &