Question

Which of the following statements is true regarding attributes of the general ledger and the general journal?

Select one:
a. The general ledger and the general journal are separate and distinct accounting records that are not related or cross-referenced to each other.
b. Both the general ledger and the general journal focus on general accounting concepts and not specific events or occurrences.
c. The general journal displays the balance in a particular account.
d. The general ledger is account driven and the general journal is transaction driven.

Answer 1

The general ledger is account driven with balance information, while the general journal is transaction driven, recording each financial transaction's details. They are interrelated with journal entries being posted to the ledger.

Step-by-step explanation:

The correct answer to the question about the attributes of the general ledger and the general journal is that the general ledger is account driven, showing the balance in each account, and the general journal is transaction driven, recording the details of each financial transaction. They are related in that entries from the general journal are posted or transferred to the general ledger, where they are summarized by account.

The general ledger and the general journal are both essential components of the double-entry accounting system. The general journal provides a chronological record of all financial transactions, capturing the date, details, and amounts involved. The general ledger organizes these transactions by account, with separate pages or sections for each account, allowing users to see the cumulative effect of transactions on each account's balance.