The first step in the accounting record-keeping process is:
A)recording each transaction in a file or other record in the form of a journal entry.
B)posting the amounts from the journal entries to individual balance sheet and income statement accounts in a general ledger.
C)making adjusting journal entries to the accounts to correct errors and to reflect the financial statement impacts of items that occur because of usage or the passage of time.
D)preparing the income statement for the period from amounts in the income statement accounts.
E)preparing the balance sheet from amounts in the balance sheet accounts.

Question

Quizplus · Accepted Answer

The first step in the accounting record-keeping process is to record each transaction in a file or other record in the form of a journal entry. This involves identifying the accounts affected, the amounts involved, and the date of the transaction. Only after this step is completed can the amounts be posted to individual accounts in the general ledger and other necessary financial statements can be prepared.

The First Step in the Accounting Record-Keeping Process Is