Which of the following is the main advantage of setting up special journals?
A) They can be used with a cash accounting system.
B) They remove the need for double entry recording.
C) They make the preparation of a trial balance easier.
D) They reduce the time required to journalise each entry and post to the general ledger.

Question

Quizplus · Accepted Answer

Special journals are designed to record frequently occurring transactions in a systematic and efficient manner. They reduce the time required to journalise each entry and post to the general ledger, thereby increasing the productivity of accounting staff. As a result, choice D is the main advantage of setting up special journals. Option A is incorrect because special journals can be used with both cash and accrual accounting systems. Choice B is incorrect because all transactions must be recorded using double entry accounting principles. Choice C is incorrect because the preparation of a trial balance is not dependent on the use of special journals.

Which of the Following Is the Main Advantage of Setting