Deck 23: The Voucher System

Question 1

In the voucher system,the purchases journal is replaced by the:

A)check register.
B)sales register.
C)invoice register.
D)voucher register.

Answer 1

D

Question 2

Which of the following is the controlling account in the general ledger when using a voucher system?

A)Cash
B)Accounts Payable
C)Accounts Receivable
D)Vouchers Payable

Answer 2

D

Question 3

Which of the following is an element in a voucher system?

A)General journal
B)Sales journal
C)Paid voucher file
D)All of these elements are used in a voucher system.

Answer 3

C

Question 4

When a voucher transaction does not fit in the special columns of the voucher register,it will be recorded in the:

A)general journal.
B)sundry column.
C)purchases debit column.
D)Both B and C

Question 5

A voucher system is designed to control a company's:

A)cash receipts.
B)cash payments.
C)stock sales.
D)internal finances.

Question 6

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

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

Question 7

In a voucher system,the cash payments journal:

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 8

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

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

Question 9

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

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 10

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

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

Question 11

Which situation would NOT result in a separation of duties?

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 12

When a purchase is made under the periodic system,the business will:

A)debit Vouchers Payable.
B)not enter a voucher in the voucher register.
C)debit Purchases.
D)All of the above

Question 13

Important principles of internal control include:

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

Question 14

A voucher register is:

A)a replacement for the purchases journal.
B)a special journal which records prenumbered vouchers.
C)Both A and B
D)Neither A nor B

Question 15

Which of the following is not a part of internal control?

A)Separation of duties
B)Purchases are made without approval.
C)A voucher system is used.
D)None of these answers is correct.

Question 16

The check register is:

A)a special journal.
B)used when paying out of petty cash.
C)used to record customer receipts.
D)used to house unpaid vouchers.

Question 17

Supporting documents for a voucher system are:

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

Question 18

Another name for the unpaid voucher file is the:

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

Question 19

A voucher is made for every:

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

Question 20

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

A)check number.
B)creditor's name.
C)voucher number.
D)Both B and C

Question 21

The voucher register would contain a column for:

A)Date of Payment.
B)Vouchers Payable credit.
C)Voucher Number.
D)Purchases credit.

Question 22

The voucher register in a voucher system is known as the:

A)book of final entry.
B)book of original entry.
C)book of vouchers.
D)voucher journal.

Question 23

Important control features provided by a voucher system:

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 24

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

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

Question 25

Which of the following business documents would originate with the selling company?

A)Purchase requisition
B)Check for payment
C)Sales invoice
D)Receiving report

Question 26

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

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

Question 27

The company receiving a purchase order prepares a:

A)purchase requisition.
B)voucher.
C)purchases invoice.
D)sales invoice.

Question 28

Each entry in a voucher register includes a:

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

Question 29

Using the gross method,record the payment of the following transaction in time to take the discount.Connect Company bought $5,000 of merchandise,terms 2/10,n/30,and uses the periodic inventory system:

A)debit Cash $5,000;credit Vouchers Payable $5,000.
B)debit Vouchers Payable $5,000;credit Cash $4,900;credit Purchases Discount $100.
C)debit Vouchers Payable $4,900;credit Cash $4,900.
D)debit Vouchers Payable $5,000;credit Cash $5,000.

Question 30

On the balance sheet,Vouchers Payable would be:

A)a special liability account.
B)an asset account.
C)renamed as Accounts Payable.
D)shown as long-term liabilities.

Question 31

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

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

Question 32

Which of the following statements is false as it pertains to a voucher system?

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 checks the purchase order and sales invoice for accuracy.
D)After all the steps are complete,payment is issued in the form of a check.

Question 33

Using the gross method,record the payment of the following transaction in time to take the discount.Clip Company bought $7,000 of merchandise,terms 1/15,n/45.The company uses the voucher system and the periodic inventory method.

A)debit Cash $7,000;credit Vouchers Payable $7,000.
B)debit Vouchers Payable $7,000;credit Cash $6,930;credit Purchases Discount $70.
C)debit Vouchers Payable $6,930;credit Cash $6,930.
D)debit Vouchers Payable $7,000;credit Cash $7,000.

Question 34

Connect Company bought $6,000 of merchandise from Woods Corporation,terms 2/10,n/30.Connect Company uses the voucher system and the periodic inventory method.The journal entry to record the payment under the gross method after the discount period would be to:

A)debit Vouchers Payable $6,000;credit Cash $6,000.
B)debit Vouchers Payable $6,000;credit Purchases Discount $120;credit Cash $5,880.
C)debit Vouchers Payable $5,880;credit Cash $5,880.
D)debit Vouchers Payable $5,880;debit Purchases Discount $120;credit Cash $6,000.

Question 35

Which of the following is true of a voucher system?

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

Question 36

Clip Company bought $7,500 of merchandise from Tarpon Corporation,terms 1/10,n/45.Clip Company uses the voucher system and the periodic inventory method.The journal entry to record the payment under the gross method after the discount period would be to:

A)debit Vouchers Payable $7,500;credit Cash $7,500.
B)debit Vouchers Payable $7,500;credit Purchases Discount $75;credit Cash $7,425.
C)debit Vouchers Payable $7,425;credit Cash $7,425.
D)debit Vouchers Payable $7,425;debit Purchases Discount $75;credit Cash $7,500.

Question 37

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

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 38

The voucher system strengthens internal control because:

A)all the duties of preparing a voucher and the receiving reports are assigned to a single person.
B)certain payments,which are made on a regular basis,such as monthly rent payments,do not need to be vouchered.
C)the employee who approves all vouchers then sends the approved vouchers to others who prepare the voucher register and the check register.
D)All of these answers are correct.

Question 39

The check register would contain a column for all except:

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

Question 40

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

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

Question 41

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

A)a debit to Purchase Discounts.
B)a credit to Purchase Discounts.
C)a debit to Cash.
D)Both B and C would be in the entry.

Question 42

The entry to record the incurrence of an expense will include:

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 43

Vouchers Payable replaces Accounts Payable in the general ledger.

Question 44

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.

Question 45

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

Question 46

The voucher system is not a form of internal control.

Question 47

A voucher register could contain which of the following columns?

A)Debit to Vouchers Payable
B)Credit to sundry account
C)Debit to sundry account
D)Both B and C.

Question 48

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

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

Question 49

Written authorizations for cash payments are called vouchers.

Question 50

Martin Corporation used the gross method of recording purchases,the voucher system and the periodic inventory method.A purchase of $6,000,2/15,n30 would be recorded as:

A)debit Purchases $6,000;credit Accounts Payable $6,000.
B)debit Purchases $6,000;credit Vouchers Payable $6,000.
C)debit Purchases $5,880;credit Accounts Payable $5,880.
D)debit Purchases $5,880;credit Vouchers Payable $5,880.

Question 51

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:

A)check register.
B)voucher register.
C)general journal.
D)A and B are correct

Question 52

The entry to record the approval of a withdrawal by the owner will include:

A)a debit to Wages Expense and a credit to Vouchers Payable.
B)a debit to Vouchers Payable and a credit to Wages Expense.
C)a debit to Withdrawals and a credit to Vouchers Payable.
D)a debit to Vouchers Payable and a credit to Withdrawals.

Question 53

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

A)the business took out a loan.
B)the business made a payment to a vendor.
C)a purchase was made on account.
D)None of the above has occurred.

Question 54

In a voucher system,the source documents include the invoice,receiving report,sales order,and purchase requisition.

Question 55

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

Question 56

In a voucher system,Vouchers Payable is the controlling account for the subsidiary ledger Unpaid Vouchers.

Question 57

In a voucher system,a schedule of vouchers payable is not the same as a schedule of accounts payable.

Question 58

To maintain good internal control procedures,the person filing a purchase requisition should approve the payment.

Question 59

Vouchers are recorded in the voucher register at the time the liability is incurred.

Question 60

Vouchers Payable is a liability account on the balance sheet.

Question 61

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

Question 62

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

Question 63

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

Question 64

Alex returned all of the $2,000 purchase of equipment to James.The company uses the voucher system.The entry to record this is:

A)
$$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Vouchers Payable }& 2,000 \\\hline \text { Equipment }& 2,000 \\\hline\end{array}\end{array}$$
B)
$$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Equipment }& 2,000 \\\hline \text { Vouchers Payable } & 2,000 \\\hline\end{array}\end{array}$$
C)
$$\begin{array}{l}\begin{array} { |c | c | } \hline \text { Equipment }&2,000 \\\hline \text { Accounts Payable } & 2,000 \\\hline\end{array}\end{array}$$
D)None of these answers is correct.

Question 65

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

Question 66

A schedule of vouchers payable is prepared from the unpaid voucher file.

Question 67

Kitchen Supply purchased $2,000 of merchandise,terms 2/10,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 method and the periodic inventory system for recording purchases.Omit explanations.

Question 68

After Sally purchased $5,000 of merchandise from Bob,Sally discovered $500 of defective merchandise.Record the entry for the return.The company uses the gross method,the periodic method and the voucher system.

A)
$$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Vouchers Payable }& 500 \\\hline \text { Vouchers Payable } & 500 \\\hline\end{array}\end{array}$$
B)
$$\begin{array} { | c | r | } \hline \text { Vouchers Payable } & 5,000 \\\hline \text { Vouchers Payable } & 4,500 \\\hline \text { Purchases Returns \& Allow. } & 500 \\\hline\end{array}$$
C)
$$\begin{array} { | l | r | } \hline \text { Vouchers Payable } & 4,500 \\\hline \text { Purchases Returns \& Allow. } & 500 \\\hline \text { Vouchers Payable } &5,000 \\\hline\end{array}$$
D)None of these answers is correct.

Question 69

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

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 70

The check register replaces the voucher journal.

Question 71

Vouchers are recorded in alphabetical order.

Question 72

Button Corporation uses a voucher system and the periodic inventory method.Record the following transactions in general journal format.Omit the explanations.
Nov.8 Purchased office equipment from Tram Company,$1,000;voucher no.200 was prepared.
Nov.12 Established a petty cash fund of $150;voucher no.201 was prepared.
Nov.14 Purchased merchandise from Carr Corporation,$1,800;voucher no.202 was prepared.

Question 73

In the voucher register "miscellaneous accounts" are classified as ________ accounts.

Question 74

Fox Company uses a voucher system and the periodic inventory method.The following transactions were completed:

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

Question 75

When merchandise is purchased,the entry in the vouchers register is a debit to Merchandise Inventory and a credit to Vouchers Payable.The company uses the periodic method.

Question 76

Emerald Corporation uses a voucher system and completed the following transactions:

Required: Prepare general journal entries to record the above transactions.Omit explanations.

Question 77

Items are listed in the voucher register in the order liabilities are incurred.

Question 78

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

Question 79

Vouchers should be filed in the tickler file ________ rather than alphabetically.

Question 80

After Crowe purchased $4,000 of merchandise from Hanks,Crowe discovered $200 of defective merchandise.Record the entry for the return (assume the gross method).The company uses the periodic method and the voucher system.

A)
$$\begin{array} { | c | r | } \hline \text { Vouchers Payable } & 4,000 \\\hline \text { Vouchers Payable } & \\\hline \text { Purchases Returns \& Allow. } & 3,800 \\\hline\end{array}$$
B)
$$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Vouchers Payable }& 200 \\\hline \text { Vouchers Payable } & 200 \\\hline\end{array}\end{array}$$
C)
$$\begin{array} { | l | r | } \hline \text { Vouchers Payable } & 3,800 \\\hline \text { Purchases Returns \& Allow. } & 200 \\\hline \text { Vouchers Payable } & 4,000\\\hline\end{array}$$
D)None of these answers is correct.