The chart of accounts, the journal, and the ledger are essential parts of the accounting system.

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The chart of accounts, journal, and ledger are all fundamental components of the accounting system. The chart of accounts sets up the categories in which financial transactions will be recorded, the journal records those transactions in chronological order, and the ledger shows the balances of each account after transactions have been posted. Together, these three elements serve as the foundation of financial recordkeeping and reporting.

The Chart of Accounts, the Journal, and the Ledger Are