After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to
A) the company's bank.
B) equity.
C) ledger accounts.
D) financial statements.

Question

Quizplus · Accepted Answer

The information from the book of original entry, such as the sales journal or cash receipts journal, needs to be transferred to ledger accounts, which serve as a summary of all transactions for each account. From there, the information can be used to create financial statements and track equity, but the initial step is transferring the information to ledger accounts.

After a Business Transaction Has Been Analyzed and Entered in the Book