A Special Journal Is Used to Record and Post Transactions

question 169

True/False

A special journal is used to record and post transactions of a similar type.

---

Definitions:

Trading Investment

A trading investment refers to securities bought and held primarily for selling them in the near term with the aim of profiting from short-term price fluctuations.

Realized Gain

A profit that results from selling an asset at a higher price than its purchase cost, officially recognized when the asset is sold.

Fair Value

The estimated price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation.

Equity Investments

Investments in shares of companies with the aim of earning dividends or selling the shares at a higher price.