What relationship exists between the general journal and the general ledger?
A)The general ledger accounts contain the same information as in the general journal, just in a different format.
B)The balances in the general ledger will always equal those in the general journal.
C)After all postings from the general journal are complete, the debit balances in the general ledger will rarely equal the credit balances.
D)The number of accounts in the general journal will always be larger than the number of accounts in the general ledger.

Question

Quizplus · Accepted Answer

The general journal records all transactions in chronological order, while the general ledger lists all accounts and their balances in a more organized and systematic way. The general ledger contains the same information as in the general journal but in a different format, allowing for easy analysis and review of account balances. Therefore, choice A is the correct answer.

B is incorrect because the balances in the general ledger may not always equal those in the general journal, particularly if there are errors or omissions in either record.

C is also incorrect because the debit balances in the general ledger should always equal the credit balances, by the principles of double-entry accounting.

D is incorrect because the number of accounts in the general journal and the general ledger will depend on the size and complexity of the business and the transactions being recorded. The two records may have different numbers of accounts, but they should still contain the same information.

What Relationship Exists Between the General Journal and the General