Transactions are recorded in either a journal or a ledger, but not in both.
Question
Transactions are recorded in either a journal or a ledger, but not in both.
Solution
This statement is incorrect. In accounting, transactions are first recorded in a journal, also known as the book of original entry. This process is known as journalizing. The journal contains a chronological record of all business transactions.
After the transactions are recorded in the journal, they are then posted or transferred to a ledger, also known as the book of final entry. The ledger organizes the same transactions by account, providing a running total of each account. This process is known as posting.
Therefore, transactions are recorded in both a journal and a ledger.
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