A Company Which Uses Special Journals Should Record a Transaction

question 22

Multiple Choice

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

• A) single-column purchases journal.
• B) multiple-column purchases journal.
• C) cash payments journal.
• D) general journal.

Calculate and interpret net operating income based on flexible and planning budgets.

Distinguish between different types of variances (e.g., spending, activity, and overall revenue and spending variances).

Identify the factors that contribute to favorable (F) and unfavorable (U) variances.

Apply budgeting concepts to both manufacturing and service industry contexts.

---

Definitions:

Great Recession

A severe global economic downturn that occurred from 2007 to 2009, marked by significant declines in market and consumer activities.

Troubled Asset Relief Program (TARP)

A program created by the U.S. government in 2008 to purchase toxic assets and equity from financial institutions to strengthen the financial sector.