Chapter 14, TEST 14A

Name ______Date ______SCORING RECORD Total Student Section Possible Deductions Score A 30 B 30 C 10 D 30 Total 100

Section A

DIRECTIONS: Each of the following statements is true or false. Indicate your choice by writing in the Answers column T for a true answer or F for a false answer. (2 points for each correct answer) For Answers Scoring 1. The paid voucher file is used to prepare the the schedule of vouchers payable. ______2. Internal controls are only important in large businesses. ______3. Internal controls are the set of procedures used to ensure that there is proper accounting for all activities of the business. ______4. Segregation means, for example, that one employee orders goods and a different employee pays for them. ______5. There is only one acceptable format for a voucher in business today. ______6. Vouchers should be prenumbered and used in sequence. ______7. The Vouchers Payable account in the general ledger may also be called the Accounts Payable. ______8. In a voucher system, in an emergency, checks may be prepared without a supporting voucher. ______9. A voucher check is a check with space for entering data about the voucher being paid. ______10. The numerical sequence of vouchers must be accounted for only when vouchers are filed numerically. ______11. A checking account is a special journal used to record all checks written in a voucher system. ______12. The three account columns in the check register are: Cash Debit, Purchases Discount Debit, and Voucher Payable Credit. ______13. Postings from the check register should be made daily. ______14. To verify each month that the sum of the individual amounts owed to creditors equals the Vouchers Payable balance, a Schedule of Vouchers Payable is prepared. ______14-2

15. Purchase returns are recorded in the general journal and are not required to be entered in the voucher register. ______

Section B

Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement. (3 points each) For Answers Scoring

1. Segregation of duties means that: (A) one employee should be responsible for ordering goods and a different employee should be responsible for issuing checks to pay for them; (B) different employees should be responsible for different parts of each transaction; (C) employees who account for transactions should not also have custody of the assets; (D) all of these; (E) none of these. ______2. The concept of adequate documents and records involve: (A) pre-numbered documents; (B) documents used in numerical sequence; (C) making sure all documents are accounted for; (D) all of these; (E) none of these. ______3. A voucher system is a control technique that requires: (A) every employee be assigned a voucher number so that each employee can be accounted for; (B) every business activity be assigned a voucher number in proper sequence; (C) every acquisition and subsequent payment be supported by an approved voucher; (D) all business transactions be recorded on a voucher; (E) all of these. ______4. The front of a voucher does not usually include: (A) a check number;(B) the date; (C) the supplier; (D) what was purchased; (E)the number of the voucher. ______5. The unpaid vouchers file is like a(n); (A) accounts receivable subsidiary ledger; (B) accounts payable subsidiary ledger; (C) sales journal; (D) purchase order; (E) check register. ______6. In a voucher system, every recorded purchase would be supported by all of the following except a: (A) purchase order;(B) receiving report; (C) cash register receipt;(D) voucher; (E) purchase invoice. ______7. A special journal used to record all checks written in a voucher system is called: (A) a voucher journal; (B) a check register; (C) a paid vouchers file; (D) a vouchers receivable journal; (E) voucher register. ______14-3

8. A check register has three columns; (A) Vouchers Receivable Dr., Purchases Dr., Cash Dr.; (B) Vouchers Payable Cr., Purchases Cr., Cash Cr.; (C) Vouchers Payable Cr., Purchases Discounts Cr., Cash Dr., (D) Vouchers Payable Dr., Purchases Discounts Cr., Cash Cr.; (E) Sales Dr.,Cash Cr., Purchases Cr. ______9. Merchandise costing $4,000 was originally purchased using a purchase order. When $200 of that merchandise was returned, the general journal entry to record receipt of the credit memo would show a debit and a credit in the amount of: (A)$4,200; (B) $4,000; (C) $3,800; (D) $200; E (E) cannot be determined from the information. ______10. The general journal entry to cancel a voucher for purchases of merchandise: (A) debit Vouchers Payable and credit Purchases; (B) debit Purchases and credit Vouchers Payable; (C) debit Vouchers Payable and credit Cash; (D) debit Accounts Payable and credit Vouchers Payable; (E) debit Cash and credit Purchases. ______

Section C

DIRECTIONS: Match the correct answer to the definition that best explains it. (2 points each)

_____ 1. Contains vouchers paid and cancelled and filed either numerically or by suppliers.

_____ 2. A control technique which requires that every acquisition and subsequent payment be supported by an approved voucher.

_____ 3. A set of procedures used to ensure that there is proper accounting for all activities of the business.

_____ 4. Vouchers (not yet paid) and supporting documents stapled together and filed either by due date or by supplier.

_____ 5. A special journal used to record purchases of all types of assets and services.

A. voucher system B. internal controls C. paid voucher file D. unpaid voucher file E. voucher register

Section D

DIRECTIONS: With the following information, make the appropriate entries to the voucher register. (30 points total)

Voucher Voucher Date Date Number Amount Issued To Purpose Ck # Pd 8/1 202 $ 2,000 Kevin Bacon Paid Rent (515) 460 8/30 8/8 203 800 Saturn Office Supplies Prepaid Office Supplies (135) 455 8/15 8/9 204 560 Omega Products Purch. Merch. On Acct. (511) 457 8/16 8/10 205 324 Home Electric & Gas Paid Utility Bill (513) 458 8/20 8/14 206 1,000 Max Co. 2/10, n/30 Purch. Merch. On Acct. (511) 459 8/20 8/15 207 4,000 Payroll Bank Account Payroll 456 8/15 8/26 208 1,500 Clarkson Company Purch. Merch. On Acct. (511) ------8/31 209 4,200 Payroll Bank Account Payroll 461 8/31

VOUCHER REGISTER FOR THE MONTH OF AUGUST General Vou. Purchases Supplies Wages Debit Vouchers Payment DATE No. Issued to Dr. Dr. Exp. Dr. Pay Cr. Acct. P/R Amount Date Ck. No.