College Accounting, 14e (Slater)
Chapter 23 The Voucher System
23.1 Learning Objective 23-1
1) A voucher system is designed to control a company’s:
A) cash receipts.
B) cash payments.
C) equity accounts.
D) internal finances.
2) A voucher is made for every:
A) cash receipt.
B) cash payment.
C) accounts payable transaction.
D) stock sale.
3) A voucher register is:
A) a replacement for the purchases journal.
B) a special journal which records prenumbered vouchers.
C) a summary of shareholders
D) Both A and B
4) A(n) ________ is used for every cash payment made.
A) invoice
B) voucher
C) purchase order
D) purchase requisition
5) 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) pay grade system.
6) 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.
7) 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.
8) 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 accounting staff have the same start time.
9) In the voucher system, the purchases journal is replaced by the:
A) check register.
B) stock register.
C) invoice register.
D) voucher register.
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.
11) Supporting documents for a voucher system are:
A) attached to stock certificate.
B) attached to the invoice.
C) attached to the purchase order.
D) attached to the voucher.
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) credit Purchases.
13) 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
14) 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.
15) Which of the following is an element in a voucher system?
A) General journal
B) Sales journal
C) Paid voucher file
D) Stock Register.
16) Another name for the unpaid voucher file is the:
A) accounts receivable file.
B) accounts payable file.
C) tickler file.
D) paid vouchers file.
17) Which of the following is the controlling account in the general ledger when using a voucher system?
A) Common Stock
B) Accounts Payable
C) Accounts Receivable
D) Vouchers Payable
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 replaced by a stock purchases register.
D) supplements the check register.
19) 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 track when stock dividends are due.
C) to keep accounts receivable up to date.
D) to keep the cash payments journal up to date.
20) Paid vouchers may be filed in the paid voucher file according to:
A) date paid.
B) creditor’s name.
C) voucher number.
D) Both B and C
21) 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
22) The company receiving a purchase order prepares a:
A) purchase requisition.
B) debit memo.
C) purchases invoice.
D) sales invoice.
23) 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.
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.
25) 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.
26) Before a voucher is approved for payment, all documents must be in agreement, except for the:
A) dividend journal.
B) invoice.
C) purchase order.
D) receiving report.
27) 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) dividend journal.
28) Under a voucher system, every liability is recorded at the time:
A) of requisition of goods.
B) of receipt of goods.
C) of payment.
D) the liability is incurred.
29) The voucher register would contain a column for all except:
A) Date of Payment.
B) Vouchers Payable credit.
C) Voucher Number.
D) Purchases credit.
30) 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.
31) 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.
32) Important control features provided by a voucher system do NOT include:
A) assure all 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) assure only approved invoices are paid.
33) 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.
34) 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.
35) Which of the following accounts is used for recording merchandise for resale?
A) Purchases
B) Purchase Discounts
C) Purchase Discounts Lost
D) Accounts Payable
36) Using the gross method, record the payment of the following transaction in time to take the discount.
Connect Company bought $8,000 of merchandise, terms 2/10, n/30, and uses the periodic inventory
system.
A) Debit Cash $8,000; credit Vouchers Payable $8,000.
B) Debit Vouchers Payable $8,000; credit Cash $7,840; credit Purchases Discount $160.
C) Debit Vouchers Payable $7,840; credit Cash $7,840.
D) Debit Vouchers Payable $8,000; credit Cash $8,000.
37) Using the gross method, record the payment of the following transaction in time to take the discount.
Clip Company bought $15,000 of merchandise, terms 1/15, n/45. The company uses the voucher system
and the periodic inventory method.
A) Debit Cash $15,000; credit Vouchers Payable $15,000.
B) Debit Vouchers Payable $15,000; credit Cash $14,850; credit Purchases Discount $150.
C) Debit Vouchers Payable $14,850; credit Cash $14,850.
D) Debit Vouchers Payable $15,000; credit Cash $15,000.
38) Connect Company bought $13,000 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 $13,000; credit Cash $13,000.
B) debit Vouchers Payable $13,000; credit Purchases Discount $260; credit Cash $12,740.
C) debit Vouchers Payable $12,740; credit Cash $12,740.
D) debit Vouchers Payable $12,740; debit Purchases Discount $260; credit Cash $13,000.
39) Clip Company bought $11,000 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 $11,000; credit Cash $11,000.
B) debit Vouchers Payable $11,000; credit Purchases Discount $110; credit Cash $10,890.
C) debit Vouchers Payable $10,890; credit Cash $10,890.
D) debit Vouchers Payable $10,890; debit Purchases Discount $110; credit Cash $11,000.
40) Each entry in a voucher register includes a:
A) debit to Cash.
B) credit to Vouchers Payable.
C) credit to Purchases.
D) debit to Vouchers Payable.
41) A voucher register could contain which of the following columns?
A) Credit to purchases account
B) Credit to sundry account
C) Debit to sundry account
D) Both B and C.
42) Martin Corporation used the gross method of recording purchases, the voucher system and the
periodic inventory method. A purchase of $10,000, 2/15, n30 would be recorded as:
A) debit Purchases $10,000; credit Accounts Payable $10,000.
B) debit Purchases $10,000; credit Vouchers Payable $10,000.
C) debit Purchases $9,800; credit Accounts Payable $9,800.
D) debit Purchases $9,800; credit Vouchers Payable $9,800.
43) 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) a cash receipt from a customer.
44) 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.
45) 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) a credit to Vouchers Payable.
46) The entry to record the incurrence of an expense will include:
A) a debit to expense 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.
47) 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.
48) 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.
49) The voucher system is a form of internal control.
50) Written authorizations for cash payments are called vouchers.
51) Vouchers are recorded in the voucher register at the time the liability is paid.
52) A schedule of unpaid vouchers can be prepared from the tickler file at the end of the month.
53) In a voucher system, the source documents include the invoice, receiving report, and a purchase
order.
54) To maintain good internal control procedures, the person filing a purchase requisition should not
approve the payment.
55) 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.
56) When a voucher is prepared, the invoice needs only to be compared to the purchase requisition,
purchase order and receiving report.
57) Vouchers Payable is not a liability account on the balance sheet.
58) Vouchers Payable replaces Accounts Payable in the general ledger.
59) In a voucher system, a schedule of vouchers payable is the same as a schedule of accounts payable.
60) In a voucher system, Vouchers Payable is the controlling account for the subsidiary ledger Unpaid
Vouchers.
61) After paying a voucher, the voucher document is marked approved.
62) Items are listed in the voucher register in the order liabilities are paid.
63) Unpaid vouchers are arranged by the voucher number in a tickler file.
64) A schedule of vouchers payable is prepared from the unpaid voucher file.
65) 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.
66) The check register replaces the voucher journal.
67) 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 Sales Discounts, and credit Cash.
68) Vouchers are recorded in alphabetical order.
69) In the voucher register, “miscellaneous accounts” are classified as ________ accounts.
70) Separation of duties in a voucher system leads to a more effective ________ for the management of
cash payments.
71) Vouchers should be filed in the tickler file ________ rather than alphabetically.
72) Peet Company uses a voucher system and the periodic inventory method. The following transactions
were completed:
May 3 Purchased $7,000 of merchandise; terms 2/10, n/30.
Prepared voucher #205.
May 13 Paid voucher #205.
Required: Prepare journal entries to record the above transactions. Assume Peet Company uses the gross
method for recording purchases. Omit explanations.
73) Fixer Supply purchased $5,000 of merchandise, terms 2/10, n/60 on July 2, and prepared voucher
#1001. Fixer Supply paid the invoice on August 31.
Prepare journal entries to record the above transactions. Assume Fixer Supply uses the gross method and
the periodic inventory system for recording purchases. Omit explanations.
74) Ebony Corporation uses a voucher system and completed the following transactions:
Dec. 31 Prepared voucher #301 to replenish the petty cash fund based on the following receipts:
supplies $52, postage $33, and cash over $5.
31 Issued check #1003 in payment of voucher #301.
Required: Prepare general journal entries to record the above transactions. Omit explanations.
75) Buzz 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 Bell Company, $1,500; voucher no. 200 was prepared.
Nov. 12 Established a petty cash fund of $200; voucher no. 101 was prepared.
Nov. 14 Purchased merchandise from Kelly Corporation, $2,100; voucher no. 102 was prepared.