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.

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Definitions:

Borrower

An individual or entity that takes money or property from another under an agreement to return it or its equivalent at a future date.

Creditor

An entity or person to whom money is owed by a debtor for goods supplied or loans given.

Discount Rate

The discount rate is the interest rate used in calculating the present value of future cash flows, often reflecting the risk and time value of money in investment appraisals.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically represented as an annual percentage.