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Which of the following should a company typically do before updating the appropriate ledger account?

A. Construct a trial balance
B. Record transactions in the journal
C. prepare adjusting entries
D. Prepare adjusted trial balance
E. none of the above

User Ceckenrode
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1 Answer

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Final answer:

Before updating the ledger, a company should record transactions in the journal. The ledger is updated afterwards with the dated and described journal entries, which include debits and credits for the transactions.

Step-by-step explanation:

Before updating the appropriate ledger account, a company should typically record transactions in the journal. This is because the journal is where all business transactions are initially recorded, using the double-entry bookkeeping system. Each transaction is dated and includes a description, accounts affected, and the amounts debited and credited. After transactions are recorded in the journal, they are then posted to the ledger, which is a collection of all the company's accounts. In contrast, constructing a trial balance, preparing adjusting entries, and preparing an adjusted trial balance occur after the ledger has already been updated with the journal entries.

User Btschumy
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