Which of the Following Is NOT a Purpose Served by Special

question 25

Multiple Choice

Which of the following is NOT a purpose served by special journals?

• A) Reduces the number of postings to the general ledger.
• B) Eliminates the general journal.
• C) Reduces the number of entries requiring narrations.
• D) Makes it easier to find errors.

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Definitions:

Aspirational Firm

A concept in business and finance referring to a company that sets ambitious goals and seeks to innovate and grow rapidly.

LIFO

Last In, First Out, an accounting method used to value inventory that assumes the most recently produced items are the first to be sold.

FIFO

First-In, First-Out, an accounting method where the oldest inventory items are recorded as sold first.

ROE

ROE, or Return on Equity, measures a corporation’s profitability by revealing how much profit it generates with the money shareholders have invested.