Final answer:
Transaction data is first recorded in the journal and then posted to the ledger, making the original statement false. This sequence is a vital part of the accounting process, ensuring the accuracy of financial records.
Step-by-step explanation:
The statement that transaction data is first posted in the ledger and then moved to the journal is false. In the accounting process, transactions are first recorded in the journal, also known as the book of original entry. This step is followed by posting the transaction details to the ledger, which contains individual accounts. The ledger thus provides a categorized record of all transactions that impact the company's finances.
For example, if a business makes a sale on credit, the transaction is initially recorded in the sales journal, indicating the amount sold, to whom, and on what terms. Later, this information is posted to the accounts receivable ledger and sales ledger, reflecting the increase in sales and accounts receivable.
Understanding the correct sequence of transaction recording is crucial for maintaining accurate financial records and is a fundamental concept of accounting.