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 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) Sales
36) 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.
37) 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.
38) 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.
39) 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.
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.
