Which of the following statements is true?
A)An entry in a general ledger account can be traced to the trial balance by referring to the page listed in the posting reference column of that ledger account.
B)The posting of an amount recorded in the general journal can be verified by referring to the account number listed in the Posting Reference column on that line in the general journal.
C)Business transactions are recorded first in the general ledger,and then that information is transferred to the general journal.
D)No explanation is needed for each entry in the general journal.

Question

Quizplus · Accepted Answer

The posting reference column in the general journal lists the account number where the entry is being posted, allowing for verification of the posting. Option A is incorrect because the posting reference column in the general ledger lists the page number of the general journal where the entry was originally recorded, not the trial balance. Option C is incorrect because business transactions are first recorded in the general journal, and then the information is transferred to the general ledger. Option D is incorrect as each entry in the general journal requires an explanation giving details of the transaction.

Which of the Following Statements Is True