Q1. What is the primary purpose of using a voucher in the accounting system?
(a) To replace the ledger entirely
(b) To provide documentary evidence and control for each transaction
(c) To increase the number of journal entries
(d) To eliminate the need for bank reconciliation
Answer: (b)
Explanation: A voucher serves as an internal control document that authorizes, records, and supports a transaction before it is posted to the books, ensuring accuracy and accountability.
Q2. Which type of voucher is prepared when cash is received from a customer?
(a) Payment Voucher
(b) Receipt Voucher
(c) Journal Voucher
(d) Debit Voucher
Answer: (b)
Explanation: A receipt voucher records cash or cheque received, evidencing the inflow of funds and supporting the cash book entry.
Q3. In a voucher system, the voucher is usually prepared:
(a) After posting the transaction to the ledger
(b) Before the transaction is recorded in the books
(c) Only at the end of the financial year
(d) Only for credit transactions
Answer: (b)
Explanation: Vouchers are prepared prior to recording to obtain proper authorization and to ensure that supporting documents are attached.
Q4. Which of the following is NOT a typical component of a voucher?
(a) Date of transaction
(b) Authorization signatures
(c) Trial balance extract
(d) Description of the transaction
Answer: (c)
Explanation: A voucher includes date, description, amount, accounts affected, and signatures; a trial balance extract is not part of a voucher.
Q5. A journal voucher is primarily used for:
(a) Recording cash receipts only
(b) Recording cash payments only
(c) Non‑cash transactions or adjustments
(d) Recording bank reconciliations
Answer: (c)
Explanation: Journal vouchers capture accruals, depreciation, corrections, and other non‑cash adjustments that do not involve cash or bank.
Q6. Which voucher would be used to record the payment of salaries to employees?
(a) Receipt Voucher
(b) Payment Voucher
(c) Journal Voucher
(d) Credit Voucher
Answer: (b)
Explanation: Salary payment involves cash outflow; a payment voucher authorizes and records the disbursement.
Q7. In a computerized accounting system, vouchers are:
(a) No longer required
(b) Replaced by bank statements only
(c) Electronically generated and stored with digital signatures
(d) Used only for tax purposes
Answer: (c)
Explanation: Modern systems generate electronic vouchers that retain the same control features as paper vouchers, often with audit trails.
Q8. The voucher approach helps in:
(a) Increasing the workload of accountants
(b) Preventing fraud and errors through segregation of duties
(c) Eliminating the need for a cash book
(d) Reducing the need for source documents
Answer: (b)
Explanation: By requiring authorization, supporting documents, and review before posting, vouchers strengthen internal control.
Q9. Which of the following statements about a receipt voucher is TRUE?
(a) It is used only for credit sales.
(b) It decreases the cash balance.
(c) It supports an increase in cash or bank balance.
(d) It cannot be used for cheque receipts.
Answer: (c)
Explanation: A receipt voucher documents inflow of cash or cheque, leading to a debit to Cash/Bank and a credit to the relevant income or receivable account.
Q10. A voucher must be attached with which of the following before it is considered complete?
(a) Bank statement
(b) Supporting documents such as invoice, receipt, or contract
(c) Trial balance
(d) Audit report
Answer: (b)
Explanation: Supporting documents validate the transaction and are essential for the voucher to be authentic and auditable.
Q11. In the voucher system, the person who prepares the voucher should ideally be different from the person who:
(a) Signs the cheque
(b) Enters the transaction in the ledger
(c) Approves the voucher
(d) Both (a) and (c)
Answer: (d)
Explanation: Segregation of duties—preparation, approval, and disbursement—reduces the risk of fraud.
Q12. Which voucher is used to record the purchase of office furniture on credit?
(a) Payment Voucher
(b) Receipt Voucher
(c) Journal Voucher
(d) None of the above
Answer: (c)
Explanation: A credit purchase of a non‑cash asset is recorded via a journal voucher (debit Furniture, credit Accounts Payable).
Q13. The voucher approach is most beneficial in:
(a) Sole proprietorships with no employees
(b) Organizations requiring strong internal control
(c) Businesses that only deal in cash
(d) Entities that do not maintain books of account
Answer: (b)
Explanation: Larger organizations with multiple personnel benefit from the control features of vouchers to safeguard assets.
Q14. Which of the following is NOT an advantage of using vouchers?
(a) Facilitates audit trail
(b) Ensures proper authorization
(c) Eliminates the need for reconciliation
(d) Reduces chances of omission
Answer: (c)
Explanation: Vouchers improve control but do not remove the need for periodic reconciliations (e.g., bank reconciliation).
Q15. A payment voucher is prepared when:
(a) Cash is received from a debtor
(b) An expense is incurred and paid
(c) A provision for doubtful debts is created
(d) Depreciation is charged
Answer: (b)
Explanation: Payment vouchers record outflow of cash or bank for expenses, purchases, or liabilities.
Q16. In a manual voucher system, vouchers are usually filed:
(a) In chronological order only
(b) By voucher type and then chronologically
(c) Randomly in a drawer
(d) Only after the financial year ends
Answer: (b)
Explanation: Proper filing by type (receipt, payment, journal) and date aids retrieval and audit.
Q17. Which voucher would be used to record the adjustment for prepaid insurance at year‑end?
(a) Receipt Voucher
(b) Payment Voucher
(c) Journal Voucher
(d) Credit Voucher
Answer: (c)
Explanation: Adjusting entries for prepaid expenses are non‑cash and recorded via journal vouchers.
Q18. The voucher system helps in ensuring that:
(a) Every transaction is supported by a source document
(b) All transactions are recorded in the cash book only
(c) No ledger accounts are needed
(d) Transactions can be posted without approval
Answer: (a)
Explanation: A voucher attaches the source document (invoice, receipt, etc.) to the transaction, providing evidence.
Q19. Which of the following best describes a “credit voucher”?
(a) A voucher for cash receipts
(b) A voucher for cash payments
(c) A voucher that increases a liability or income account
(d) A voucher used only for bank transactions
Answer: (c)
Explanation: Though less common terminology, a credit voucher typically indicates a transaction that credits an account (e.g., recording income or a liability increase).
Q20. In the voucher approach, the “approval” step is performed by:
(a) The clerk who prepares the voucher
(b) The cashier who disburses funds
(c) A supervisor or authorized officer
(d) The external auditor
Answer: (c)
Explanation: Approval by a responsible authority ensures the transaction is legitimate and within budget.
Q21. Which voucher is used to record the receipt of a bank loan?
(a) Payment Voucher
(b) Receipt Voucher
(c) Journal Voucher
(d) Both (a) and (b)
Answer: (b)
Explanation: Receiving a loan increases cash/bank (debit) and creates a liability (credit); a receipt voucher captures the cash inflow.
Q22. A voucher that corrects an error in a previously posted transaction is called:
(a) Payment Voucher
(b) Receipt Voucher
(c) Journal Voucher
(d) Adjustment Voucher
Answer: (c)
Explanation: Corrections are made through journal vouchers (often termed adjustment vouchers) which debit and credit appropriate accounts.
Q23. The voucher system is most similar to which modern control concept?
(a) Zero‑based budgeting
(b) Activity‑based costing
(c) Segregation of duties and documentation
(d) Historical cost principle
Answer: (c)
Explanation: Vouchers embody documentation, authorization, and separation of duties—core internal control principles.
Q24. Which of the following is TRUE about a journal voucher in a computerized accounting system?
(a) It cannot be reversed.
(b) It automatically updates the cash book.
(c) It creates an audit trail with user ID and timestamp.
(d) It is only used for opening entries.
Answer: (c)
Explanation: Electronic journal vouchers record who made the entry, when, and why, providing a traceable audit trail.
Q25. In a voucher system, the final step before posting to the ledger is:
(a) Attaching the source document
(b) Obtaining the approval signature
(c) Filing the voucher in the cabinet
(d) Preparing the trial balance
Answer: (b)
Explanation: After preparation and attachment of supporting documents, the voucher must be approved; only then is the transaction posted to the ledger.
