Because the first formal accounting record of a transaction is made in a journal from source document information, a journal is commonly referred to as a(n)
A) ledger.
B) account.
C) cross-reference.
D) book of original entry.

Question

Quizplus · Accepted Answer

A journal is commonly referred to as a book of original entry because it is the first place where accounting transactions are recorded from source documents. It is called a book of original entry because it is where the original transaction details are recorded before they are transferred to other accounting records such as ledgers or accounts.

Because the First Formal Accounting Record of a Transaction Is