Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The fundamental rule of accounting is that for every transaction, the total debits must equal the total credits. Therefore, when a transaction is journalized, the total of the amounts debited must equal the total of the amounts credited. Option A is not true because while recording transactions in the general journal, the year, month, and day on which the event occurred are entered in the Date column. Option C is not true because journalizing transactions is the first step in the accounting cycle. Option D is not true because the general journal is flexible enough to record almost all business transactions.

Which of the Following Statements Is Correct