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.

 

 



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