The Use of Special Journals to Record Transactions

question 120

Multiple Choice

The use of special journals to record transactions

• A) eliminates the need for a general ledger.
• B) can save time in the posting process.
• C) eliminates the need for a general journal.
• D) should only be used if the volume of transactions is small.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.

Non-Current Assets

Assets intended for use over an extended time, beyond the next fiscal year, such as property, plant, and equipment.

Entire Class

A group of securities or assets that share the same rights and characteristics.

Acquisition Date

The specific date on which one company gains control over another, marking the point from which the acquiree's financial performance starts being included in the acquirer's financial statements.