A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):
A) Account.
B) Trial balance.
C) Journal.
D) T-account.
E) Balance column account.

Question

Quizplus · Accepted Answer

A journal is a record in which the effects of transactions are first recorded in chronological order. It is used to keep a chronological record of all transactions affecting a firm, including those that do not involve cash. Entries in the journal are then posted to the appropriate accounts in the ledger, and ultimately summarized in the trial balance. Option A is incorrect because an account is where transactions are recorded after they have been posted from the journal. Option B is incorrect because the trial balance is simply a list of all the account balances in the ledger. Option D is incorrect because a T-account is a visual representation used in the ledger to illustrate the debits and credits in a transaction. Option E is incorrect because a balance column account is simply an account in which the balance is calculated in separate columns for debits and credits.

A Record in Which the Effects of Transactions Are First