BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Journalizing transactions is the process of keeping a record of all your business transactions, tracking them in chronological order, and generally includes the date, the account you’re debiting or crediting and a brief description of the transaction that occurred.
Detailed explanation-2: -A journal, commonly known as the Book of Original Entry or the Day Book is a book of transactions recorded in a chronological order. Usually, transactions are recorded in a journal before they are recorded in a ledger account. The details entered to record one transaction in Journal is known as a Journal Entry.
Detailed explanation-3: -The eight steps of the accounting cycle are as follows: identifying transactions, recording transactions in a journal, posting, the unadjusted trial balance, the worksheet, adjusting journal entries, financial statements, and closing the books.
Detailed explanation-4: -A journal, also known as Books of Original Entry, keeps records of business transactions in a systematic order. Transactions are recorded in the journal in chronological order, i.e. as they occur; one after the other.
Detailed explanation-5: -A journal is a chronological (arranged in order of time) record of business transactions.