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Where should a firm's business transactions FIRST be recorded?
Suggested Answer: C
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Comprehensive and Detailed Explanation:
A Journal (Option C) is the first place where transactions are recorded chronologically, before being posted to the General Ledger.
Option A (Balance Sheet) is incorrect because it is a financial statement, not a transaction log.
Option B (General Ledger) is incorrect because transactions must first be recorded in a journal before being posted.
Option D (Trial Balance) is incorrect because it is a summary of ledger balances used for reconciliation.
GAAP Accounting Principles -- Transaction Recording
Payroll.org -- Payroll Accounting Workflow
12 comments · newest first
AL
Alberta
2 months ago
But what about B) General Ledger? Isn't that where they get organized later?
BI
Billye
2 months ago
Agreed, Alex! Transactions go into the Journal first.
TI
Tish
2 months ago
I think it should be C) Journal. That's where everything starts.
CA
Carmen
2 months ago
Journal is the correct answer, no doubt!
TW
Twana
2 months ago
Really? I thought it was the Trial Balance.
AL
Alfreda
2 months ago
Wait, isn't it the General Ledger?
EL
Elena
3 months ago
I agree, transactions go in the Journal first.
BI
Billye
3 months ago
It's definitely the Journal!
BE
Beatriz
3 months ago
The Trial Balance seems too late in the process, so I guess it has to be the Journal.
GI
Giovanna
3 months ago
I'm a bit confused; I thought the General Ledger was where everything goes after the Journal.
VI
Virgilio
3 months ago
I remember practicing a similar question, and I think the Journal is definitely the right answer.
DA
Darrin
4 months ago
I think the transactions should be recorded in the Journal first, but I'm not completely sure.