1. Signify "True" or "False" as applicable for each of the following items as they pertain to special journals and subsidiary ledgers.

1. The purchases journal typically reflects only purchases of merchandise inventory. All other purchases are typically recorded in different journals.

a) True b) False

2. The purchases journal typically reflects both debits and credits to accounts payable.

1. True b) False

3. A transaction that increases unearned revenue due to a customer prepayment would typically be recorded in the sales journal.

1. True b) False

4. A transaction the decreases unearned revenue as it becomes earned would typically be recorded in the sales journal.

a) True b) False

5. Data from the "accounts receivable" column of a cash receipts journal is typically posted to the general ledger in summary.

1. True b) False

6. Data from the "accounts receivable" column of a cash receipts journal is typically posted to the accounts receivable subsidiary ledger in summary.

1. True b) False

7. Data from the "other accounts" column of a cash receipts journal is typically posted to the general ledger in summary.

1. True b) False

8. Data from special journals must eventually be recorded in the general journal in order for the accounting process to be complete.

1. True b) False

9. Data from special journals is not posted. Only data from the general journal is posted.

1. True b) False

10. A business MUST use special journals. If a business chooses NOT to use special journals, and instead records ALL transactions in the general journal, the accounting process could not be properly completed.

1. True b) False