The proper sequence used in recording a business transaction is
A) analyze, post, journalize, record the account balance, and complete the reference column in the journal.
B) analyze, journalize, post, record the account balance, and complete the reference column in the journal.
C) analyze, journalize, post, complete the reference column in the journal, and record the account balance.
D) journalize, analyze, post, record the account balance, and complete the reference column in the journal.

Question

Quizplus · Accepted Answer

The proper sequence for recording a business transaction is:

1. Analyze the transaction to determine the accounts affected and the amount of the transaction.
2. Journalize the transaction by recording the information in the general journal.
3. Post the journal entries to the accounts in the general ledger.
4. Record the account balances by totaling the debit and credit amounts in each account.
5. Complete the reference column in the journal by noting the page number in the general ledger where the entry was posted.

Therefore, the correct sequence is analyze, journalize, post, record the account balance, and complete the reference column in the journal, which is option B.

The Proper Sequence Used in Recording a Business Transaction Is