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) owner's equity.
C) ledger accounts.
D) financial statements.

Question

Quizplus · Accepted Answer

The information from the book of original entry needs to be transferred to the ledger accounts in order to keep track of the individual accounts and balances. This allows for the preparation of accurate financial statements and analysis of the company's financial performance. Transferring the information to the bank or owner's equity accounts would not be the next step in the recording process.

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