Question 1

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 2

Carolyn Company purchased $4,500 of merchandise with terms of 4/10, n/60 and paid the invoice within the discount period. If Brooke's uses the net method of recording merchandise purchases, the $180 purchases discount is:

Accepted Answer

A) recorded in the voucher register. 
B) recorded in the check register. 
C) recorded in the general journal. 
D) not recorded unless the discount is lost after the discount date. 
A) recorded in the voucher register. 
B) recorded in the check register. 
C) recorded in the general journal. 
D) not recorded unless the discount is lost after the discount date.

Question 3

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

Accepted Answer

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

Question 4

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 5

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

Accepted Answer

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

Question 6

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 credit 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 credit to Cash. 
D) Both B and C would be in the entry.

Question 7

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 8

Bill returned all of the $4,700 purchase of equipment to Sue. The entry to record this is:

Accepted Answer

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

Question 9

When merchandise is purchased, the entry in the vouchers register is a debit to Purchases and a credit to Vouchers Payable.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) a debit to Vouchers Payable. 
B) a credit to Purchase Discounts. 
C) a debit to Discounts Lost. 
D) None of these are correct. 
A) a debit to Vouchers Payable. 
B) a credit to Purchase Discounts. 
C) a debit to Discounts Lost. 
D) None of these are correct.

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

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 13

The Discount Lost account is used when the gross method is used for recording invoices.

Accepted Answer

A) True 
 B)False

Question 14

Important control features provided by a voucher system:

Accepted Answer

A) assure only approved invoices are paid. 
B) centralize the recording of all expenditures in one place-the voucher register. 
C) include using the check register along with the voucher register. 
D) All of these answers are correct. 
A) assure only approved invoices are paid. 
B) centralize the recording of all expenditures in one place-the voucher register. 
C) include using the check register along with the voucher register. 
D) All of these answers are correct.

Question 15

Toy Trains Company bought $5,000 of merchandise, terms 2/10, n/30. The journal entry to record the transaction under the net approach method would be to:

Accepted Answer

A) debit Purchases $4,900; credit Accounts Payable $4,900. 
B) debit Purchases $5,000; credit Vouchers Payable $5,000. 
C) debit Purchases $5,000; credit Vouchers Payable $4,900; credit Discounts Lost $100. 
D) debit Purchases $4,900; credit Vouchers Payable $4,900. 
A) debit Purchases $4,900; credit Accounts Payable $4,900. 
B) debit Purchases $5,000; credit Vouchers Payable $5,000. 
C) debit Purchases $5,000; credit Vouchers Payable $4,900; credit Discounts Lost $100. 
D) debit Purchases $4,900; credit Vouchers Payable $4,900.

Question 16

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 17

Vouchers Payable replaces Accounts Payable in the general ledger.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) Purchases 
B) Purchase Discounts 
C) Purchase Discounts Lost 
D) Sales 
A) Purchases 
B) Purchase Discounts 
C) Purchase Discounts Lost 
D) Sales

Question 20

Any change in an already recorded voucher dictates the ________ of that voucher.

Accepted Answer

The answer of Any change in an already recorded voucher...

Exam 23: The Voucher System

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

Carolyn Company purchased $4,500 of merchandise with terms of 4/10, n/60 and paid the invoice within the discount period. If Brooke's uses the net method of recording merchandise purchases, the $180 purchases discount is:

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

Important principles of internal control include:

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

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). -

Bill returned all of the $4,700 purchase of equipment to Sue. The entry to record this is:

When merchandise is purchased, the entry in the vouchers register is a debit to Purchases and a credit to Vouchers Payable.

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

The entry to record the incurrence of an expense 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). -

The Discount Lost account is used when the gross method is used for recording invoices.

Important control features provided by a voucher system:

Toy Trains Company bought $5,000 of merchandise, terms 2/10, 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:

Vouchers Payable replaces Accounts Payable in the general ledger.

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

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

Any change in an already recorded voucher dictates the ________ of that voucher.

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

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