The proper sequence used in recording a business transaction is:

A) analyze, post, journalize, post the account balance, and complete the reference column in the journal.
B) analyze, journalize, post, record the account balance, and complete the reference column in the journal.
C) analyze, journalize, post, complete the reference column in the journal, and record the account balance.
D) journalize, analyze, post, post the account balance, and complete the reference column in the journal.

Question

Lilly Trinh · Accepted Answer

Final Answer : B, Explanation :  The correct sequence for recording a business transaction is to first analyze the transaction to understand its financial effects, then journalize it by entering it into the journal (book of original entry), followed by posting it to the ledger accounts. After posting, the account balances are updated, and finally, the reference column in the journal is completed to indicate that the posting has been done. This ensures a systematic and accurate recording of transactions.

Definitions

Learning Objectives

Learning Objectives

Related questions