Is it true that every business uses the same journal to record transactions?

• A. Yes, all businesses are required to use a single, standardized journal.
• B. Only corporations use different journals; sole proprietorships use the same journal.
• C. No, businesses may use different types of journals depending on their needs.
• D. Journals are not used in modern accounting systems.

Answer: (C)

Verified step by step guidance

1. Understand the concept of a journal in accounting: A journal is a record where all business transactions are initially recorded in chronological order before being posted to the ledger accounts.
2. Recognize that businesses may use different types of journals based on their specific needs. Common types include the general journal, sales journal, purchases journal, cash receipts journal, and cash disbursements journal.
3. Note that the choice of journal depends on the nature and volume of transactions. For example, a business with frequent cash transactions might use a cash receipts journal, while another with many credit sales might use a sales journal.
4. Understand that modern accounting systems often use computerized software, which automates the recording process. However, the concept of journals still exists within these systems, even if they are not manually maintained.
5. Conclude that it is not true that all businesses use the same journal. Businesses tailor their accounting practices, including the use of journals, to suit their operational needs and transaction types.