LO1 The types of special journals a business uses should depend on the types of transactions it has most frequently.

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Answer 1

Textbook Question

Chapter 12, Problem 1TF

LO1 The types of special journals a business uses should depend on the types of transactions it has most frequently.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

True

Explanation of Solution

Special journal: It is a book which records some specific kinds of transactions such as cash receipts, cash payments, credit sales, and credit purchases. Special journal is created for any kind of transaction. A business uses special journals depending on the types of transactions that occur most repeatedly. If a specific type of transactions occur often, it is more likely a special journal of that type would be beneficial for the business.

The major advantages of the use of special journals:

It helps to saving the record-keeping expenses, because it is used to record the single kind of transaction. For example, the business has many transactions in which cash is paid out for that the business will likely to use a special journal for recording cash payments.
It helps to reduce the record-keeping errors because it records a single kind of transaction which helps to identify the errors.

Hence, the given statement is true.

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Perreth Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dale Perreth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment 2,000 Garments 3,500 Garments 5,000 Garments $ 2,800 2.00 Average cost per garment Requirement 2. Why does the average cost per garment change? The average cost per garment changes as volume changes, due to the component of the dry cleaner's costs. The cost per unit decreases as volume , while the variable…

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Answer 2

Textbook Question

Chapter 12, Problem 1TF

LO1 The types of special journals a business uses should depend on the types of transactions it has most frequently.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

True

Explanation of Solution

Special journal: It is a book which records some specific kinds of transactions such as cash receipts, cash payments, credit sales, and credit purchases. Special journal is created for any kind of transaction. A business uses special journals depending on the types of transactions that occur most repeatedly. If a specific type of transactions occur often, it is more likely a special journal of that type would be beneficial for the business.

The major advantages of the use of special journals:

It helps to saving the record-keeping expenses, because it is used to record the single kind of transaction. For example, the business has many transactions in which cash is paid out for that the business will likely to use a special journal for recording cash payments.
It helps to reduce the record-keeping errors because it records a single kind of transaction which helps to identify the errors.

Hence, the given statement is true.

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Answer 3

Textbook Question

Chapter 12, Problem 1TF

LO1 The types of special journals a business uses should depend on the types of transactions it has most frequently.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

True

Explanation of Solution

Special journal: It is a book which records some specific kinds of transactions such as cash receipts, cash payments, credit sales, and credit purchases. Special journal is created for any kind of transaction. A business uses special journals depending on the types of transactions that occur most repeatedly. If a specific type of transactions occur often, it is more likely a special journal of that type would be beneficial for the business.

The major advantages of the use of special journals:

It helps to saving the record-keeping expenses, because it is used to record the single kind of transaction. For example, the business has many transactions in which cash is paid out for that the business will likely to use a special journal for recording cash payments.
It helps to reduce the record-keeping errors because it records a single kind of transaction which helps to identify the errors.

Hence, the given statement is true.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 12, Problem 1TF

LO1 The types of special journals a business uses should depend on the types of transactions it has most frequently.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

True

Explanation of Solution

Special journal: It is a book which records some specific kinds of transactions such as cash receipts, cash payments, credit sales, and credit purchases. Special journal is created for any kind of transaction. A business uses special journals depending on the types of transactions that occur most repeatedly. If a specific type of transactions occur often, it is more likely a special journal of that type would be beneficial for the business.

The major advantages of the use of special journals:

It helps to saving the record-keeping expenses, because it is used to record the single kind of transaction. For example, the business has many transactions in which cash is paid out for that the business will likely to use a special journal for recording cash payments.
It helps to reduce the record-keeping errors because it records a single kind of transaction which helps to identify the errors.

Hence, the given statement is true.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

True

Explanation of Solution

Special journal: It is a book which records some specific kinds of transactions such as cash receipts, cash payments, credit sales, and credit purchases. Special journal is created for any kind of transaction. A business uses special journals depending on the types of transactions that occur most repeatedly. If a specific type of transactions occur often, it is more likely a special journal of that type would be beneficial for the business.

The major advantages of the use of special journals:

It helps to saving the record-keeping expenses, because it is used to record the single kind of transaction. For example, the business has many transactions in which cash is paid out for that the business will likely to use a special journal for recording cash payments.
It helps to reduce the record-keeping errors because it records a single kind of transaction which helps to identify the errors.

Hence, the given statement is true.

Answer 8

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

True

Explanation of Solution

Special journal: It is a book which records some specific kinds of transactions such as cash receipts, cash payments, credit sales, and credit purchases. Special journal is created for any kind of transaction. A business uses special journals depending on the types of transactions that occur most repeatedly. If a specific type of transactions occur often, it is more likely a special journal of that type would be beneficial for the business.

The major advantages of the use of special journals:

It helps to saving the record-keeping expenses, because it is used to record the single kind of transaction. For example, the business has many transactions in which cash is paid out for that the business will likely to use a special journal for recording cash payments.
It helps to reduce the record-keeping errors because it records a single kind of transaction which helps to identify the errors.

Hence, the given statement is true.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify whether the given statement is true or false.

Answer 12

Answer to Problem 1TF

True

Answer 13

Explanation of Solution

Special journal: It is a book which records some specific kinds of transactions such as cash receipts, cash payments, credit sales, and credit purchases. Special journal is created for any kind of transaction. A business uses special journals depending on the types of transactions that occur most repeatedly. If a specific type of transactions occur often, it is more likely a special journal of that type would be beneficial for the business.

The major advantages of the use of special journals:

It helps to saving the record-keeping expenses, because it is used to record the single kind of transaction. For example, the business has many transactions in which cash is paid out for that the business will likely to use a special journal for recording cash payments.
It helps to reduce the record-keeping errors because it records a single kind of transaction which helps to identify the errors.

Hence, the given statement is true.

Answer 14

Ch. 12 - LO1 The types of special journals a business uses...Ch. 12 - Prob. 2TF Ch. 12 - Prob. 3TF Ch. 12 - Prob. 4TF Ch. 12 - LO4 Purchases returns and allowances are recorded...Ch. 12 - The first step in posting the sales journal to the...Ch. 12 - LO3 In the cash receipts journal, each amount in...Ch. 12 - The journal that should be used to record the...Ch. 12 - A purchases journal usually is used to record all...Ch. 12 - In the cash payments journal, each amount in the...

LO1 The types of special journals a business uses should depend on the types of transactions it has most frequently.

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Answer to Problem 1TF

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