A. helps in the preparation of the balance sheet
B. prevents fraud and theft of item of the business
C. serves as a book of instruction to the bookkeeper
D. help the banking industry to be efficient
Correct Answer:
Option B – prevents fraud and theft of item of the business
Explanation
The advantages of using a journal in the recording process is, it discloses in one place the complete effects of a transaction, it provides a chronological record of transactions, & it helps to prevent or locate errors because the debit and credit amounts for each entry can be easily compared.
