Question

Describe the characteristics of using special journals. (Check all that apply.)

a.They streamline the recording and posting processes.
b.They spread out the recording responsibility for certain types of transactions.
c.They are designed to meet the special needs of each business.
d.They are generic across business types and this increases comparability of accounting information.

Answer 1

A. They streamline the recording and posting processes

B. They spread out the recording responsibility for certain types of transactions.

C. They are designed to meet the special needs of each business.

Explanation: Special journals are accounting journals made specifically to handle or record certain types of financial transactions. Special journals are specifically designed for certain business needs.

Example includes the following

a cash receipt journal for recording all cash transactions, a purchase journal used to record all credit purchases, a sales journal used to record all credit sales etc.