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What is the purpose of journals in accounting?
What is the purpose of journals in accounting?
- To represent different categories such as assets, liabilities, equity, revenue, and expenses
- To identify and analyze financial transactions
- To transfer information to the general ledger
- To record financial transactions in chronological order (correct)
What is the general ledger in accounting?
What is the general ledger in accounting?
- A document that shows the balance of each account
- A specialized book where you record each transaction in chronological order
- A summary of all financial transactions related to your business
- A collection of accounts that represent different categories such as assets, liabilities, equity, revenue, and expenses (correct)
Which financial transactions should be recorded in journals?
Which financial transactions should be recorded in journals?
- All the money coming in and going out, such as sales, expenses, loans, and investments (correct)
- Only sales and expenses
- Only cash receipts and cash disbursements
- Only loans and investments
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