Which of the following statements is CORRECT?
A)When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general ledger.
B)The general ledger contains the accounts that are used to prepare the financial statements.
C)Some companies use the general ledger instead of a general journal.
D)When entries are posted from the general journal to the general ledger, the page number is written in the Posting Reference column in the general journal.

Question

Quizplus · Accepted Answer

The general ledger contains the accounts that are used to prepare the financial statements. The general ledger serves as the main accounting record for a company and contains all accounts used for financial reporting purposes. The general journal is used to record transactions that cannot be recorded in a specialized journal, such as the sales journal, cash receipts journal, or purchases journal. When entries are posted from the general journal to the general ledger, the account number is written in the Posting Reference column in the general journal. Some companies may use a general ledger instead of a general journal, but it is not common practice. The page number is not typically written in the Posting Reference column in either the general journal or the general ledger.

Which of the Following Statements Is CORRECT