Future Business Leaders of America (FBLA) Accounting Practice Test

What is a special amount column?

1. A column used exclusively for payroll deductions

2. A column designed to record specific types of transactions

3. A column used for year-end adjustments

4. A column that summarizes account totals

The correct answer is: A column designed to record specific types of transactions

A special amount column is designed specifically to record certain types of transactions that share a common characteristic. This helps streamline the accounting process by grouping similar entries together, thereby enhancing the organization and clarity of financial records. For instance, businesses often use special amount columns in journals to separately track sales tax, cash sales, or expense reimbursements, making it easier to manage and review these particular transactions during accounting periods. The other options, while they may refer to specific functions in accounting, do not encompass the primary purpose of a special amount column. For example, payroll deductions have their own distinct handling and would typically not be recorded in a column reserved for various specific transactions. Year-end adjustments usually occur in different contexts within accounting records and are not the main purpose of special amount columns. Summarizing account totals is more relevant to general ledger summaries, which differ from the focused nature of special amount columns.