Question

When journalizing a transaction, a short explanation may be written A : on the line following each journal entry. B : at the bottom of the ledger. C : on the line preceding each journal entry. D : to separate the debit and credit entries.

Answer 1

Answer:

The correct answer is letter "A": on the line following each journal entry.

Explanation:

Brief descriptions can be added after each entry of the journal whenever necessary. The note must be included in the next line of the entry that might need extra explanation or clarification. Accuracy is relevant for accounting purposes since companies tend to be audited and they must demonstrate their transactions are transparent.