After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to
A) the company's bank.
B) stockholders' equity.
C) ledger accounts.
D) financial statements.

Question

Quizplus · Accepted Answer

The information from the book of original entry needs to be transferred to ledger accounts, which are used to summarize and organize transactions for financial reporting. From the ledger accounts, financial statements can be prepared and stockholders' equity can be calculated, but these steps come after the transfer to the ledger accounts. The company's bank is not typically involved in the recording process.

After a Business Transaction Has Been Analyzed and Entered in the Book