The usual sequence of steps in the transaction recording process is:
A) journal ➔ analyze ➔ ledger.
B) analyze ➔ journal ➔ ledger.
C) journal ➔ ledger ➔ analyze.
D) ledger ➔ journal ➔ analyze.

Question

Quizplus · Accepted Answer

The usual sequence of steps in the transaction recording process is first to analyze the transaction to determine its effects on the accounts. Then, record the transaction in a journal, and finally, transfer the entries to the respective accounts in the ledger. Therefore, the correct sequence is analyze ➔ journal ➔ ledger. The only option that follows this sequence is option B.

The Usual Sequence of Steps in the Transaction Recording Process