Final answer:
Special journals categorize transactions for streamlined recording and summarize data before posting to the ledger, which is still necessary for financial reporting.The correct answer is option a. All the source documents can be recorded into one special journal
Step-by-step explanation:
The advantage of using Special journals is that it streamlines the recording process by allowing for the categorization of similar transactions. This means that not all source documents are recorded into one special journal, but rather into different journals based on the type of transaction. For example, sales might be recorded in a sales journal while cash receipts go into a cash receipts journal.
Information in special journals is indeed recorded in date order, aiding in the ease of finding transactions; however, this does not eliminate the need for a ledger. Instead, summaries from special journals are posted to the ledger, which may not include the same level of detail found in the journals.
Most importantly, a ledger is still required because it is the central repository that shows the final balances of all accounts, facilitating the preparation of financial statements. Contrary to the student's assumption, special journals reduce the amount of data entered into the ledger but do not replace it.