When a company uses special journals, the general journal is used for selected transactions and events including:
A) Recording adjusting transactions.
B) Posting transactions to special journals.
C) Accumulating debits and credits.
D) Collecting detailed listings of amounts.
E) Recording cash receipts.

Question

Quizplus · Accepted Answer

The general journal is used to record adjusting transactions that cannot be recorded in special journals. Special journals are used for frequent transactions such as sales, purchases, cash receipts, and cash disbursements.

Answer: B 
 The general journal may be used to post transactions to special journals when no other option exists.

Answer: C 
 The general ledger is used to accumulate debits and credits from all journals and is used to prepare the financial statements.

Answer: D 
 Detailed listings of amounts may be collected in special journals, but the general journal is used for recording non-routine transactions or adjustments.

Answer: E 
 Cash receipts are typically recorded in a cash receipts journal or a receipts column of a revenue journal, not in the general journal.

When a Company Uses Special Journals, the General Journal Is