Chapter 14, TEST 14B Name _________________________ Date _________________________ SCORING RECORD Section Total Possible A B C D Total 30 30 10 30 100 Deductions 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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Internal control is only needed for small & medium sized businesses. _____ Internal controls are only set up for sales transactions. _____ A voucher is a document that shows an acquisition and that payment is authorized. _____ The supplier normally prepares vouchers for a business. _____ A formal voucher system is most appropriate for medium- and large-size businesses, however, the volume of transactions in a business must be sufficient to warrant the cost of such a system. _____ The "Payment" section on the back of a voucher is for the date of when the voucher should be paid. _____ Both individual and summary postings are required from the voucher register to the general journal. _____ Unpaid vouchers should always be filed alphabetically by supplier name. _____ The "voucher packet" contains the voucher and the check. _____ After the voucher has been paid, the cashier completes the "Payment" approval on the back of the voucher, and then the voucher and supporting documents are cancelled to indicate payment. _____ A check register is similar to a cash payments journal. _____ Most businesses that use a voucher system still keep an accounts payable subsidiary ledger. _____ If a complete return of merchandise is made, a general journal entry is made to record the return, and Vouchers Payable is credited for the full amount. _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ Student Score 14-2 14. If a partial return is made, a general journal entry is made to record the partial return, and Vouchers Payable is debited for amount of the return. _____ 15. For installment payments, a separate voucher is prepared for each payment. _____ _____ _____ 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. 2. 3. 4. 5. 6. 7. Elements important to the internal control of expenditures include: (A) segregation of duties; (B) authorization procedures and related responsibilities; (C) adequate documents and records (D) all of these; (E) none of these. _____ Segregation of duties means that: (A) one employee should order goods and also be responsible for paying for them; (B) one employee should record the purchases and a different employee should be responsible for storing those goods; (C) employers should make an allowance for at least one employee to obtain goods for personal use; (D) all of these; (E) none of these. _____ A voucher system is a control technique that requires: (A) every acquisition and subsequent payment be supported by an approved voucher; (B) every employee be assigned a voucher number so that each employee can be accounted for; (C) every business activity be assigned a voucher number in proper sequence; (D) all business transactions be recorded on a voucher; (E) none of these. _____ The back of a voucher does not usually include: (A) the accounts to be debited; (B) the payment date; (C) the check number; (D) the amount; (E) a description of what was purchased. _____ A voucher check has three parts: (A) the check itself; (B) a statement of invoice being paid and any deductions; (C) a receipt; (D) a statement of the current balance of vouchers payable; (E) a and b. _____ 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. _____ The only possible debit in the check register is: (A) Vouchers Receivable; (B) Purchases Discounts; (C) Vouchers Payable; (D) Cash; (E) Purchases. _____ _____ _____ _____ _____ _____ _____ _____ 14-3 8. When a business uses the voucher system and a voucher register, the check register replaces the: (A) cash receipts journal; (B) cash payments journal; (C) purchases journal; (D) sales journal; (E) petty cash account. _____ 9. In a voucher system, if a return of merchandise costing $120 is made and a credit memo is received from the supplier, which of the following procedures would NOT be done? (A) the return is noted on the voucher; (B) the credit memo is attached to the voucher; (C) the amount of $120 is credited to Accounts Payable; (D) the voucher is placed in the paid vouchers file; (E) the return is noted in the Payment column of the voucher register. _____ 10. The general journal entry to record a complete return of merchandise costing $545 is: (A) debit Accounts Payable and credit Purchases; (B) debit Vouchers Payable and credit Cash; (C) debit Vouchers Payable and credit Purchases Returns and Allowances; (D) debit Purchases and credit Vouchers Payable; (E) debit Cash and credit Vouchers Payable. _____ _____ _____ _____ Section C DIRECTIONS: Match the correct answer to the definition that best explains it. (2 points each) _____ 1. A control technique which requires that every acquisition and subsequent payment be supported by an approved voucher. _____ 2. A special journal used to record all checks written in a voucher system. _____ 3. A special journal used to record purchases of all types of assets and services. _____ 4. A document which shows that an acquisition is proper and that payment is authorized. _____ 5. The set of procedures used to ensure that there is proper accounting for all activities of the business. a. b. c. d. e. check register voucher system voucher voucher register internal controls 14-4 Section D DIRECTIONS: Prepare a schedule of vouchers payable and the check register for W.J. Foster based on information found in the following voucher register. (30 points total) VOUCHER REGISTER FOR THE MONTH OF JUNE Vou. No. Date Purch Suppl. Wages Dr. Dr. Exp. Dr. Issued To 6/1 187 Worden Co 2/10 n/30 6/5 188 Edward's Office Supply 6/5 189 Orchard Product page General Debit Acct. 515 P/R Amt. 3,000 700 190 WNH 6/13 191 Miller Co. 2/10,n/30 6/15 192 Payroll Bank Account 6/27 193 Carter Company 6/28 194 Payroll Bank Account 152 2,000 DATE 5,000 152 5,000 1,500 534 6/14 535 6/15 536 6/28 537 1,500 5,000 PAYEE Ck. No. 6/10 2,000 700 10,000 5,000 3,152 17,912 CHECK REGISTER CHECK NO. Date 560 513 4,060 3,000 Payment 700 560 6/11 Vouch. Pay. Cr. VOUCHER PAY. DR. PURCHASE DISCOUNT NO. AMOUNT CREDIT CASH CREDIT