Future Business Leaders of America (FBLA) Accounting Practice Test

Which of the following is NOT a characteristic of special journals?

1. Multi-column format

2. Recording specific transaction types

3. Applied to very few transactions

4. All transactions are recorded

The correct answer is: Applied to very few transactions

Special journals are designed to capture specific types of transactions, which allows for more efficient recording and reporting in accounting. They typically feature a multi-column format that categorizes various aspects of each transaction, making it easier to summarize and analyze particular types of financial information. When considering the characteristics of special journals, the correct choice indicates that they are not applied to very few transactions. In fact, special journals are utilized for recording a significant volume of similar transactions, such as sales, purchases, cash receipts, and cash disbursements. This design helps streamline the accounting process by grouping similar transactions, allowing for repetitive entries to be recorded consistently and efficiently. In contrast to this, the notion that all transactions are recorded in special journals is not accurate, as general journals are typically used for those transactions that do not fit specifically into the established categories covered by special journals. Thus, recognizing that special journals are meant to handle a higher volume of particular transaction types is essential for understanding their purpose and utility in accounting.