Deck 23: The Voucher System

Question 1

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.

Answer 1

A

Question 2

Important principles of internal control include:

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.

Answer 2

D

Question 3

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

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

Answer 3

C

Question 4

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

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

Question 5

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 6

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

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

Question 7

A voucher is made for every:

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

Question 8

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

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

Question 9

When a purchase is made,the business will:

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

Question 10

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 11

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

A)Separation of duties
B)No purchases are made without approval.
C)A voucher system is used.
D)None of these answers are correct.

Question 12

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

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

Question 13

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

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

Question 14

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 15

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)vouchers payable credit column.
D)both B and C.

Question 16

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 17

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

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

Question 18

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 19

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 20

A tickler file is the same as the:

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

Question 21

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

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

Question 22

The voucher system strengthens internal control because:

A)all the duties of preparing a voucher and the receiving reports are assigned to multiple employees.
B)certain payments,which are made on a regular basis,such as monthly rent payments,still 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 23

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:

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 24

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 25

The company receiving a purchase order prepares a:

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

Question 26

The book of original entry in a voucher system is the:

A)sales journal.
B)purchases journal.
C)voucher register.
D)check register.

Question 27

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

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

Question 28

Which of the following business documents would not originate with the purchasing company?

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

Question 29

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

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 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

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 32

The voucher register would contain a column for all except:

A)check numbers.
B)Vouchers Payable credit.
C)Cash credit.
D)Purchases debit.

Question 33

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 34

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 35

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 36

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)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 37

Clip Company bought $6,500 of merchandise from Tarpon Corporation,terms 2/15,n/45.The journal entry to record the payment under the gross method approach after the discount period would be to:

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

Question 38

Using the gross method approach,record the payment of the following transaction in time to take the discount.Connect Company bought $4,000 of merchandise,terms 3/10,n/30:

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

Question 39

The check register would contain a column for all except:

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 40

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

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 41

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)None of these answers is correct.

Question 42

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

Question 43

To maintain good internal control procedures,the person filing a purchase requisition should never approve the payment.

Question 44

Vouchers Payable is a liability account on the balance sheet.

Question 45

The entry to record payment of a voucher for an invoice after the discount period under the gross 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 are correct.

Question 46

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

Question 47

Written authorizations for cash payments are called vouchers.

Question 48

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 49

Vouchers Payable replaces Accounts Payable in the general ledger.

Question 50

A voucher register could contain which of the following columns?

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

Question 51

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

Question 52

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

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

Question 53

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

Question 54

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 55

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

Question 56

In a voucher system,a schedule of vouchers payable is essentially the same as a schedule of accounts payable.

Question 57

The voucher system is a form of internal control.

Question 58

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 59

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

Question 60

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

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 61

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

A) $\begin{array}{|l|l|cc} \hline \text { Vouchers Payable } & \text { 1,000 }\\\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad Equipment } &\quad\quad\quad\quad\quad\quad1,000\\\hline\end{array}$

B) $\begin{array}{|l|l|cc} \hline \text { Equipment } & \text { 1,000 }\\\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad Vouchers Payable } &\quad\quad\quad\quad\quad\quad1,000\\\hline\end{array}$


C) $\begin{array}{|l|l|cc} \hline \text { Equipment } & \text { 1,000 }\\\hline \text { \quad\quad\quad\quad\quad\quad\quad\quad\quad Accounts Payable } &\quad\quad\quad\quad\quad\quad1,000\\\hline\end{array}$



D)None of these answers are correct.

Question 62

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

Question 63

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

Question 64

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) $\begin{array} { | c | r | } \hline \text { Vouchers Payable } & 5,000 \\\hline \text { Vouchers Payable } &\quad\quad\quad 4,600 \\\hline \text { Purchases Returns \& Allow. } & 400 \\\hline\end{array}$
B) $\begin{array} { | c | r | } \hline \text { Vouchers Payable } &400 \\\hline \text {\quad\quad \quad\quad\quad \quad\quad\quad Vouchers Payable } &\quad\quad\quad 400 \\\hline\end{array}$
C) $\begin{array} { | l | r | } \hline \text { Vouchers Payable } & 4,600 \\\hline \text { Purchases Returns \& Allow. } & 400 \\\hline \text { Vouchers Payable } & 5,000\\\hline\end{array}$
D)None of these answers are correct.

Question 65

A schedule of vouchers payable is prepared from the check register.

Question 66

Vouchers are recorded in alphabetical order.

Question 67

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.

Question 68

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

Question 69

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

Question 70

Button Corporation uses a voucher system.Record the following transactions in general journal format.Omit the explanations.

Question 71

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

Question 72

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 73

The check register replaces the voucher journal.

Question 74

Emerald Corporation uses a voucher system and completed the following transactions:
Required: Prepare general journal entries to record the above transactions.Omit explanations.

Question 75

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

A) $\begin{array} { | c | r | } \hline \text { Vouchers Payable } &800 \\\hline \text {\quad\quad \quad\quad\quad \quad\quad\quad Vouchers Payable } &\quad\quad\quad 800 \\\hline\end{array}$
B) $\begin{array} { | c | r | } \hline \text { Vouchers Payable } & 3,000 \\\hline \text { Vouchers Payable } & 2,200 \\\hline \text { Purchases Returns \& Allow. } & 800 \\\hline\end{array}$
C) $\begin{array} { | l | r | } \hline \text { Vouchers Payable } & 2,200 \\\hline \text { Purchases Returns \& Allow. } & 800 \\\hline \text { Vouchers Payable } & 3,000\\\hline\end{array}$
D)None of these answers are correct.

Question 76

Fox Company uses a voucher system.The following transactions were completed:
Required: Prepare journal entries to record the above transactions.Assume Fox Company uses the gross approach method for recording purchases.Omit explanations.

Question 77

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

Question 78

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

Question 79

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

Question 80

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.