College Accounting, 12e (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) stock sales.
D) internal finances.
2) A voucher is made for every:
A) cash receipt.
B) cash payment.
C) accounts payable transaction.
D) accounts receivable transaction.
3) 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.
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) check paying system.
6) 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.
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 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.
9) In the voucher system, the purchases journal is replaced by the:
A) check register.
B) sales 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) filed in a tickler file.
B) attached to the invoice.
C) attached to the purchase order.
D) attached to the voucher.
12) 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.
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) vouchers payable credit 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 are correct.
15) 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.
16) A tickler file is the same as the:
A) accounts receivable file.
B) accounts payable file.
C) paid vouchers file.
D) unpaid vouchers file.
17) In a voucher system, the controlling account in the general ledger is:
A) Cash.
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 used to record the information found in the check 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 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.
20) 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.
21) 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
22) The company receiving a purchase order prepares a:
A) purchase requisition.
B) voucher.
C) bill of lading.
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) 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.
26) 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.
27) The book of original entry in a voucher system is the:
A) sales journal.
B) purchases journal.
C) voucher register.
D) check register.
28) 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.
29) The voucher register would contain a column for all except:
A) check numbers.
B) Vouchers Payable credit.
C) Cash credit.
D) Purchases debit.
30) 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.
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:
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.
33) 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.
34) 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.
35) Which of the following accounts is used for recording merchandise for resale?
A) Purchases
B) Purchase Discounts
C) Purchase Discounts Lost
D) Sales
36) 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.
37) 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.
38) 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.
39) 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.
40) 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.
41) 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
42) 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.
43) 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.
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 credit 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 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.
46) 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.
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) None of these answers is 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 as they are paid.
52) A schedule of vouchers payable 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, purchase order, and
purchase requisition.
54) To maintain good internal control procedures, the person filing a purchase requisition should never
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 and
purchase order.
57) Vouchers Payable is 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 essentially the same as a schedule of accounts
payable.
60) In a voucher system, Accounts Payable is the controlling account for the subsidiary ledger Unpaid
Vouchers.
61) After paying a voucher, the voucher document is marked paid.
62) Items are listed in the voucher register in the order liabilities are incurred.
63) Unpaid vouchers are arranged by the due date in a tickler file.
64) A schedule of vouchers payable is prepared from the check register.
65) When merchandise is purchased, the entry in the vouchers register is a debit to Purchases and a credit
to Vouchers Payable.
66) The check register replaces the voucher journal.
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.
68) Vouchers are recorded in alphabetical order.
69) Fox Company uses a voucher system. The following transactions were completed:
May 3 Purchased $4,750 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 Fox Company uses the gross
approach method for recording purchases. Omit explanations.
70) 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.
71) Emerald Corporation uses a voucher system and completed the following transactions:
Dec. 31 Prepared voucher #422 to replenish the petty cash fund based on the following receipts:
supplies $47, postage $48, and cash short $2.
31 Issued check #1003 in payment of voucher #422.
Required: Prepare general journal entries to record the above transactions. Omit explanations.
72) Button Corporation uses a voucher system. Record the following transactions in general journal
format. Omit the explanations.
Nov. 8 Purchased office equipment from Tram Company, $800; voucher no. 200 was prepared.
Nov. 12 Established a petty cash fund of $80; voucher no. 201 was prepared.
Nov. 14 Purchased merchandise from Carr Corporation, $800; voucher no. 202 was prepared.
73) Name and discuss the two most important internal control principles embedded in the voucher
system.
74) In the voucher register “miscellaneous accounts” are classified as ________ accounts.