When recording a business transaction into the general ledger, certain steps are followed. Identify the statement below that is NOT CORRECT regarding this process.
A)All transactions are recorded first in the general journal and then they are transferred to the general ledger.
B)After posting a transaction, the new balance in an account can be seen in the general ledger.
C)The process of transferring data from the journal to the ledger is called posting.
D)All transactions are recorded first in the general ledger and then they are transferred to the journal.

Question

Quizplus · Accepted Answer

The statement "All transactions are recorded first in the general ledger and then they are transferred to the journal" is not correct. Transactions are first recorded in the journal and then transferred to the general ledger through the process of posting. Therefore, option D is the incorrect statement.

When Recording a Business Transaction into the General Ledger, Certain