Question 1

The voucher system is a form of internal control.

Accepted Answer

A) True 
 B)False

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).
-

Accepted Answer

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

Question 3

Kitchen Supply purchased $1,900 of merchandise, terms 4/10, n/60 on July 2, and prepared voucher #1001. Kitchen Supply paid the invoice on August 31.
Prepare journal entries to record the above transactions. Assume Kitchen Supply uses the gross approach method for recording purchases. Omit explanations.

Accepted Answer

The answer of Kitchen Supply purchased $1,900 of merchandise, terms...

Question 4

Using the gross method approach, record the payment of the following transaction in time to take the discount. Clip Company bought $6,500 of merchandise, terms 2/15, n/45:

Accepted Answer

A) debit Cash $6,500; credit Vouchers Payable $6,500. 
B) debit Vouchers Payable $6,500; credit Cash $6,370; credit Purchases Discount $130. 
C) debit Vouchers Payable $6,370; credit Cash $6,370. 
D) debit Vouchers Payable $6,500; credit Cash $6,500. 
A) debit Cash $6,500; credit Vouchers Payable $6,500. 
B) debit Vouchers Payable $6,500; credit Cash $6,370; credit Purchases Discount $130. 
C) debit Vouchers Payable $6,370; credit Cash $6,370. 
D) debit Vouchers Payable $6,500; credit Cash $6,500.

Question 5

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 6

The check register would contain a column for all except:

Accepted Answer

A) the payee name. 
B) a debit to Vouchers Payable. 
C) a credit to Cash. 
D) All of the above would be included in columns. 
A) the payee name. 
B) a debit to Vouchers Payable. 
C) a credit to Cash. 
D) All of the above would be included in columns.

Question 7

Partial payments of an original voucher require new vouchers for each approved payment.

Accepted Answer

A) True 
 B)False

Question 8

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Prepared voucher #425 for a note payable. The principle amounts to $2,500 and there is $100 of interest which has not been accrued.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

Debit 5 &

Question 9

On the balance sheet, the liability for vouchers will be:

Accepted Answer

A) Vouchers Payable. 
B) Accounts Payable. 
C) Invoices Payable. 
D) None of these answers are correct. 
A) Vouchers Payable. 
B) Accounts Payable. 
C) Invoices Payable. 
D) None of these answers are correct.

Question 10

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 11

Separation of duties in a voucher system leads to a more effective ________ for the management of cash payments.

Accepted Answer

The answer of Separation of duties in a voucher system...

Question 12

The element that is used in the voucher system is the:

Accepted Answer

A) voucher register. 
B) tickler file. 
C) paid voucher file. 
D) All of these elements are used in a voucher system. 
A) voucher register. 
B) tickler file. 
C) paid voucher file. 
D) All of these elements are used in a voucher system.

Question 13

The information contained on a voucher includes: invoice number and date; purchase order number; the amount to be paid, who is being paid; voucher number; and the verification steps.

Accepted Answer

A) True 
 B)False

Question 14

If it is later decided to pay an approved voucher in two payments:

Accepted Answer

A) a memo in the check register must show the unpaid balance. 
B) an entry in the Paid column of the voucher register must show the unpaid balance. 
C) the original voucher must be canceled and two new vouchers must be issued. 
D) a memo must be made on the voucher to show the unpaid balance. 
A) a memo in the check register must show the unpaid balance. 
B) an entry in the Paid column of the voucher register must show the unpaid balance. 
C) the original voucher must be canceled and two new vouchers must be issued. 
D) a memo must be made on the voucher to show the unpaid balance.

Question 15

All paid vouchers may be filed in the paid voucher file according to:

Accepted Answer

A) check number. 
B) date of payment. 
C) voucher number. 
D) invoice date. 
A) check number. 
B) date of payment. 
C) voucher number. 
D) invoice date.

Question 16

The Discount Lost account is used when the:

Accepted Answer

A) gross method is used and the discount is not taken. 
B) gross method is used and the discount is taken. 
C) net method is used and the discount is not taken. 
D) net method is used and the discount is taken. 
A) gross method is used and the discount is not taken. 
B) gross method is used and the discount is taken. 
C) net method is used and the discount is not taken. 
D) net method is used and the discount is taken.

Question 17

When using a voucher system, all of the following are true except that:

Accepted Answer

A) the purchase order must be completed and approved before the goods are purchased. 
B) a receiving report is completed when goods are received and is checked against the purchase order. 
C) someone in the receiving department verifies the numbers and checks the purchase order and purchase invoice for accuracy. 
D) after all the steps are complete, payment is issued in the form of a check. 
A) the purchase order must be completed and approved before the goods are purchased. 
B) a receiving report is completed when goods are received and is checked against the purchase order. 
C) someone in the receiving department verifies the numbers and checks the purchase order and purchase invoice for accuracy. 
D) after all the steps are complete, payment is issued in the form of a check.

Question 18

Before a voucher is approved for payment, all documents must be in agreement, except for the:

Accepted Answer

A) accounts receivable ledger. 
B) invoice. 
C) purchase order. 
D) receiving report. 
A) accounts receivable ledger. 
B) invoice. 
C) purchase order. 
D) receiving report.

Question 19

Given the following accounts:
   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:
   Indicate...

Question 20

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Received an invoice in the amount of $80 for repairs to the store equipment, voucher #423 was prepared.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

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

Exam 23: The Voucher System

The voucher system is a form of internal control.

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). -

Using the gross method approach, record the payment of the following transaction in time to take the discount. Clip Company bought $6,500 of merchandise, terms 2/15, n/45:

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 check register would contain a column for all except:

Partial payments of an original voucher require new vouchers for each approved payment.

On the balance sheet, the liability for vouchers will be:

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

Separation of duties in a voucher system leads to a more effective ________ for the management of cash payments.

The element that is used in the voucher system is the:

The information contained on a voucher includes: invoice number and date; purchase order number; the amount to be paid, who is being paid; voucher number; and the verification steps.

If it is later decided to pay an approved voucher in two payments:

All paid vouchers may be filed in the paid voucher file according to:

The Discount Lost account is used when the:

When using a voucher system, all of the following are true except that:

Before a voucher is approved for payment, all documents must be in agreement, except for the:

Given the following accounts: 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 ________ & ________ & ________

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Received an invoice in the amount of $80 for repairs to the store equipment, voucher #423 was prepared. 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. -Borrowed $4,000, signing a 5%, 60 day promissory note. Debit & & Credit & &

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Received an invoice in the amount of $80 for repairs to the store equipment, voucher #423 was prepared. Debit & & Credit & &