Which of the following is true regarding the general journal?
A) It keeps up to date records of all customers and suppliers.
B) It helps divide up accounting tasks.
C) It helps prevent errors.
D) It helps control the spending of the organization.

Question

Quizplus · Accepted Answer

The general journal is a fundamental component of the double-entry bookkeeping system, where each financial transaction is entered as both a debit and a credit in separate accounts. This method helps in detecting and preventing errors by ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced after each transaction. Choices A, B, and D describe functions that are not specifically related to the general journal's primary purpose.

Which of the Following Is True Regarding the General Journal