Question 1

The company receiving a purchase order prepares a:

Accepted Answer

A) purchase requisition. 
B) voucher. 
C) bill of lading. 
D) sales invoice. 
A) purchase requisition. 
B) voucher. 
C) bill of lading. 
D) sales invoice.

Question 2

Laird Corporation bought $2,000 of merchandise from Woods Corporation, terms 2/10, n/30. The journal entry to record the payment under the net approach method after the discount period would be to:

Accepted Answer

A) debit Vouchers Payable $2,000; credit Cash $2,000. 
B) debit Vouchers Payable $2,000; credit Discounts Lost $40; credit Cash $1,960. 
C) debit Vouchers Payable $1,960; credit Cash $1,960. 
D) debit Vouchers Payable $1,960; debit Discounts Lost $40; credit Cash $2,000. 
A) debit Vouchers Payable $2,000; credit Cash $2,000. 
B) debit Vouchers Payable $2,000; credit Discounts Lost $40; credit Cash $1,960. 
C) debit Vouchers Payable $1,960; credit Cash $1,960. 
D) debit Vouchers Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.

Question 3

If a purchase return or allowance occurs after the posting of the original voucher, the original voucher is cancelled.

Accepted Answer

A) True 
 B)False

Question 4

After Sally purchased $3,000 of merchandise from Bob, Sally discovered $800 of defective merchandise. Record the entry for the return.

Accepted Answer

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

Question 5

Connect Company bought $4,000 of merchandise from Woods Corporation, terms 3/10, n/30. The journal entry to record the payment under the gross method approach after the discount period would be to:

Accepted Answer

A) debit Vouchers Payable $4,000; credit Cash $4,000. 
B) debit Vouchers Payable $4,000; credit Discounts Lost $120; credit Cash $3,880. 
C) debit Vouchers Payable $3,880; credit Cash $3,880. 
D) debit Vouchers Payable $3,880; debit Discounts Lost $120; credit Cash $4,000. 
A) debit Vouchers Payable $4,000; credit Cash $4,000. 
B) debit Vouchers Payable $4,000; credit Discounts Lost $120; credit Cash $3,880. 
C) debit Vouchers Payable $3,880; credit Cash $3,880. 
D) debit Vouchers Payable $3,880; debit Discounts Lost $120; credit Cash $4,000.

Question 6

A(n)________ is used for every cash payment made.

Accepted Answer

A) invoice 
B) voucher 
C) purchase order 
D) purchase requisition 
A) invoice 
B) voucher 
C) purchase order 
D) purchase requisition

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

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 9

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 10

A schedule of vouchers payable can be prepared from the tickler file at the end of the month.

Accepted Answer

A) True 
 B)False

Question 11

In a voucher system, the cash payments journal:

Accepted Answer

A) is replaced by a check register. 
B) is used to record payments by check. 
C) is used to record the information found in the check register. 
D) supplements the check register. 
A) is replaced by a check register. 
B) is used to record payments by check. 
C) is used to record the information found in the check register. 
D) supplements the check register.

Question 12

Crane Printing purchased $5,000 of supplies from Paper Wholesale, terms 2/10, n/30 on July 25, and prepared voucher #611. Crane paid the voucher on July 31.
Required: Prepare journal entries to record the above transactions assuming Crane uses the net approach method for recording purchases.

Accepted Answer

The answer of Crane Printing purchased $5,000 of supplies from...

Question 13

The reason for filing vouchers in an unpaid voucher file according to due date is:

Accepted Answer

A) to allow the company to take advantage of cash discounts. 
B) to allow the company to cancel payment of the bills. 
C) to keep accounts receivable up to date. 
D) to keep the cash payments journal up to date. 
A) to allow the company to take advantage of cash discounts. 
B) to allow the company to cancel payment of the bills. 
C) to keep accounts receivable up to date. 
D) to keep the cash payments journal up to date.

Question 14

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 15

What is the internal control advantage of using the net method of accounting for merchandise purchases?

Accepted Answer

A) It highlights the inefficiency of losing purchase discounts. 
B) It guarantees that all purchase discounts will be taken. 
C) It automatically increases a firm's cash balance. 
D) It results in a higher quality of inventory on hand for customers. 
A) It highlights the inefficiency of losing purchase discounts. 
B) It guarantees that all purchase discounts will be taken. 
C) It automatically increases a firm's cash balance. 
D) It results in a higher quality of inventory on hand for customers.

Question 16

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 17

Each entry in a voucher register includes a:

Accepted Answer

A) debit to Cash. 
B) credit to Vouchers Payable. 
C) debit to Purchases Discounts. 
D) debit to Vouchers Payable. 
A) debit to Cash. 
B) credit to Vouchers Payable. 
C) debit to Purchases Discounts. 
D) debit to Vouchers Payable.

Question 18

Vouchers are recorded in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 19

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Paid voucher #419 which was issued to reimburse petty cash for the purchase of supplies, $35, and delivery expense of $50.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

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

Question 20

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.

Exam 23: The Voucher System

The company receiving a purchase order prepares a:

Laird Corporation bought $2,000 of merchandise from Woods Corporation, terms 2/10, n/30. The journal entry to record the payment under the net approach method after the discount period would be to:

If a purchase return or allowance occurs after the posting of the original voucher, the original voucher is cancelled.

After Sally purchased $3,000 of merchandise from Bob, Sally discovered $800 of defective merchandise. Record the entry for the return.

Connect Company bought $4,000 of merchandise from Woods Corporation, terms 3/10, n/30. The journal entry to record the payment under the gross method approach after the discount period would be to:

A(n)________ is used for every cash payment made.

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). -

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). -

A schedule of vouchers payable can be prepared from the tickler file at the end of the month.

In a voucher system, the cash payments journal:

Crane Printing purchased $5,000 of supplies from Paper Wholesale, terms 2/10, n/30 on July 25, and prepared voucher #611. Crane paid the voucher on July 31. Required: Prepare journal entries to record the above transactions assuming Crane uses the net approach method for recording purchases.

The reason for filing vouchers in an unpaid voucher file according to due date is:

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). -

What is the internal control advantage of using the net method of accounting for merchandise purchases?

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). -

Each entry in a voucher register includes a:

Vouchers are recorded in alphabetical order.

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:

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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