Special Journals Are Created, or Established, to Record Specific Types

question 31

Multiple Choice

Special journals are created, or established, to record specific types of transactions.Which of the following is not one of the special journals?

• A)Fixed Asset Journal
• B)Cash Receipts Journal
• C)Purchases Journal
• D)Payroll Journal

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Definitions:

CGT

Capital Gains Tax, which is a tax on the profit realized on the sale of a non-inventory asset.

Flotation Cost

The total costs incurred by a company in offering its securities to the public, including underwriting, legal, and registration fees.

Target Capital Structure

The mix of debt, equity, and other financing sources a company aims to use to finance its operations and growth.

WACC

Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.