Which of the following sequences is the normal sequence of flow of accounting data?
A) Ledger → Journal → Source document
B) Journal → Source document → Ledger
C) Source document → Journal → Ledger
D) Source document → Ledger → Journal

Question

Quizplus · Accepted Answer

The normal sequence of flow of accounting data is from source documents to journal and then to ledger. Source documents provide the initial data, which are then recorded in the journal as journal entries. These journal entries are then transferred to the ledger where they are classified and summarized. Therefore, the correct sequence is Source document → Journal → Ledger.

Which of the Following Sequences Is the Normal Sequence of Flow