Question

Which of the following is the order of steps to journalize an entry?

A. Identify the accounts and the account type → Decide whether each account increases or decreases, then apply the rules of debits and credits → Record the transaction
B. Identify the accounts and the account type → Record the transaction Decide whether each account increases or decreases, then apply the rules of debits and credits
C. Decide whether each account increases or decreases, then apply the rules of debits and credits → Identify the accounts and the account type → Record the transaction
D. Record the transaction Identify the accounts and the account type → Decide whether each account increases or decreases, then apply the rules of debits and credits

Answer 1

The correct order of steps to journalize an entry is to identify the accounts and the account type, decide whether each account increases or decreases, then apply the rules of debits and credits, and finally record the transaction.

Step-by-step explanation:

The correct order of steps to journalize an entry is:

1. Identify the accounts and the account type
2. Decide whether each account increases or decreases, then apply the rules of debits and credits
3. Record the transaction

By following this order, you can ensure that you accurately record the transaction and maintain the balance of debits and credits in the accounts.