Which journal would you use to keep track of cash expenditures?

Prepare for the Funeral Service Education (FSE) National Board Exam with comprehensive resources. Access multiple choice questions, flashcards, and detailed explanations to boost your confidence and improve your knowledge. Ace the exam seamlessly!

The cash payments journal is specifically designed to record all cash outflows or expenditures, making it the correct choice for tracking cash expenditures. It provides a quick and organized way to monitor all payments made in cash, allowing for efficient management of cash flow. This journal captures detailed entries such as the date, amount, and purpose of each cash payment, ensuring that all expenditures are accurately accounted for.

In contrast, the sales journal is primarily used for recording credit sales, while the general journal serves to record transactions that do not fit into specialized journals and often requires more detailed entries. The cash receipts journal, on the other hand, focuses on tracking cash inflows, detailing all cash received by the business. Therefore, for the specific purpose of monitoring cash expenditures, the cash payments journal is the most appropriate choice.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy