 In this presentation, we will take a look at multiple choice questions related to Special Journals. First question, which is not true of Special Journals? Which is not true of Special Journals? A, they are tools to help journalize transactions. B, they allow posting of amounts as column totals. C, they could differ with different accounting system needs. D, they eliminate the need for general journal. E, they produce an efficient division of labor. So once again, I'm going to read through this and we'll see if we can cross these out with the process of elimination, which is not true of Special Journals. We may first want to try to define what our Special Journals, in order to try to eliminate this, Special Journals are. When using a system, typically more of a manual system as opposed to an automated system, the Special Journals allowing us to group similar transactions into the Special Journals rather than posting each transaction into the general journal, saving the time of posting the debit and credit and then posting or recording the debit and credit for each transaction, and recording it to the general ledger each time instead, putting each transaction into the Special Journals, summing them up at the end of the time period, then making one recording at that time period to the general journal and posting to the general ledger. Okay, so let's read through these, which is not true of Special Journals A, they are tools to help journalize transactions. It seems like there are kind of tools that are going to help us to journalize the transactions in a different way, but I think that sounds true, so I'm going to cross it out. B, they allow posting of amounts as column totals. And that's pretty much what we're going to do, we're going to sum everything up at the end of the month, and then we're going to post things out or journalize them in terms of the column totals. So I don't think that's it, I think that's true. C, they could differ with different accounting systems. The types of Special Journals that we use and the format of those Special Journals may differ depending on different companies, so I think that's true. D, they eliminate the need for a general journal. Now they do kind of reduce the general journal need because we're going to record a lot less into the general journal, but at the end of the time period and for any type of system that doesn't fit into a Special Journal, we will still use the general journal. So I think that's wrong. E, let's keep that for now, E says they produce an efficient division of labor. Now I'm not totally sure about that either, I mean they do record different types of transactions differently, grouping the types of transactions differently. So let's read through this one more time and then try to select this. We're going to say which is not true of Special Journals. Either D or E, D says they eliminate the need for a general journal. And again, I think they kind of reduce the need or they reduce the activity in the general journal, but I think we still would need one for the end of the time period when we record all the information and for any transaction that doesn't fit. So I would think D would be good and then E says they produce an efficient division of labor. And again, I'm not totally convinced on that, but I'm pretty sure that D is right and I think the fact that they do record special different transactions would allow us to more easily have a different division of labor dealing with their own kind of journal and recording, for example, sales transactions, purchases transactions, cash receipts and payment transactions. So E could be true. I'm going to keep that. I'm going to go with D being the correct answer. Once again, final answer being which is not true of Special Journals. D, they eliminate the need for a general journal. Next question, record containing information on specific accounts that have common characteristics is once again, record containing information on specific accounts that have common characteristics is A, subsidiary ledger, B, general ledger, C, special ledger, D, all-purpose ledger and E, the column balance ledger. So once again, we'll read through this, see if we can cross anything out with the process of elimination. So record containing information on specific accounts that have common characteristics is a subsidiary ledger. Now, subsidiary ledgers are going to be things like that are given more detail on stuff like the accounts receivable and accounts payable. So they are specific. So I'm going to keep that for now. The general ledger. Now the general ledger we use for every account. Every account has a controlling account has a general ledger account. So I don't think that's going to be just for specific accounts. And then we've got the special ledger. Special ledger seems kind of special, so that kind of fits the term here. So I'm going to keep that for now. D says all-purpose ledger, doesn't seem like it's going to be specific if it's all-purpose. So I'm thinking that's not going to be it. And E says column balance ledger. And that might be, special journals have a column balance item, but I'm not sure that's a thing. So I don't think that I'm going to say that's not a thing. I'm going to cross that out. So we're left with A and C. Let's read through it one more time. Record containing information on specific accounts that record common characteristics is a subsidiary ledger or a special ledger. And of the two, I'm going to go with the special ledger C. The subsidiary ledger being more of a specific item that's going to be added to usually what the special kind of ledgers will be. And that's going to be things that are going to break things out, typically accounts receivable accounts payable by customer and by vendor. So once again, final answer, record containing information on specific accounts that have common characteristics is C, special ledger. Next question, subsidiary ledger A includes transactions not in special journals, B is a listing of all business accounts, C are often used for accounts payable and accounts receivable, D is also called the general ledger, E is also called the special journal. So I'm going to read through this one more time and then we'll see if we can cross the items out with the process of elimination. subsidiary ledger A includes transactions not in special journals. So we might want to try to list this out first and try to describe what is a subsidiary ledger a little bit and see if we can cross anything out. Now the subsidiary ledger is typically going to give added information over in the top what the general ledger will have. It's not really the special journal because the special journal is going to be used to record the data for the transactions. And then it's going to be posted typically to the general ledger and we will also need some type of subsidiary ledger for specific accounts, typically accounts receivable and accounts payable recording data by who we owe money to and who owes us money. So let's read through here. We're going to say includes transactions not in the special journal. The subsidiary ledger is actually going to the same transaction will be in the special journal and will be in the subsidiary ledgers. So that's not going to be it. We're going to have to record because we're going to the special journals are kind of like the journal entry that will be recording them will post the data to the general journal and the subsidiary ledger. So B is a listing of all business accounts. That's not that's just going to be a chart of account or chart of accounts. So that's not it. C are often used for accounts payable and accounts receivable. And when we think about subsidiary ledgers, those are probably the first two that we want to apply to it. So C looks pretty good. Let's read the rest though. D is also called the general ledger and we want to keep those separate. They are separate. The subsidiary ledger is when we need more detail over and above what is given on the general ledger, that being detailed by date, ordered by date. So it's going to be not that in E also called special journal. And it's going to be something different than the special journal here. So it's not that of course, special journals are going to be the four journals or four main journals that we use in order to record transactions, the more of a manual system. So we're left with C here. C is going to be the answer. Subsidiary ledgers C are often used for accounts payable and accounts receivable because the accounts payable and accounts receivable are going to, we want to know one, who we owe money to for accounts payable and two, who owes us money for accounts receivable with that information not given to us by the typical controlling account, the general ledger that only given us information in order of date.