The debit and credit analysis of a transaction normally takes place when the
A) entry is posted to a subsidiary ledger.
B) entry is recorded in a journal.
C) trial balance is prepared.
D) financial statements are prepared.

Question

Quizplus · Accepted Answer

The debit and credit analysis of a transaction is first recorded in a journal, which records all transactions in chronological order. This analysis helps to ensure the accuracy of the journal entries. The entries may later be posted to a subsidiary ledger, used to create a trial balance, and ultimately prepare financial statements, but it all starts with the journal entry analysis.

The Debit and Credit Analysis of a Transaction Normally Takes