13 Questions
What is the purpose of a Cash Receipts Journal?
To record all cash received
Why is the use of special journals preferred over the general journal for recording transactions?
To increase cost effectiveness and simplify the recording process
What type of transactions are recorded in the Sales Journal?
All sales on credit (on account)
Which journal is used to record all cash that had been received?
Cash Receipts Journal
Why is recording all transactions in the general journal not cost effective?
It increases the cost of recording transactions
What is the purpose of a Purchase Journal?
To record all purchases of inventory on credit
What is the primary purpose of the general journal?
To record any type of business transactions
What is the main reason for using special journals instead of the general journal?
To make recording transactions more efficient
Which journal is used to record all cash payments?
Cash Disbursements Journal
What type of transactions are recorded in the Purchase Journal?
Inventory purchases on account
In which journal are all sales on credit recorded?
Sales Journal
Why is recording all transactions in the general journal not cost-effective?
It is not designed for specific types of transactions
What is the purpose of the Cash Receipts Journal?
To record all cash that had been received
Test your knowledge of accounting journals and transactions with this quiz. Explore the differences between the general journal and special journals, and understand the process of journalizing transactions.
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