Which of the following statements is true?
A) An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account.
B) The posting of an amount recorded in the general journal can be verified by referring to the account number listed in the posting reference column on that line in the general journal.
C) Business transactions are recorded first in the general ledger; then that information is transferred to the general journal.
D) No explanation is needed for each entry in the general journal.

Question

Quizplus · Accepted Answer

The posting reference column in the general journal contains the account number of the ledger account to which the entry was posted. By referring to this column and verifying that the amount was posted correctly, we can ensure the accuracy of the general ledger and subsequently the trial balance. Option A is incorrect because the posting reference column in the ledger account refers to the page number in the general journal identifying the source of the transaction, not the trial balance. Option C is incorrect because business transactions are first recorded in the general journal before being transferred to the appropriate accounts in the general ledger. Option D is incorrect because every entry in the general journal requires an explanation.

Which of the Following Statements Is True