Question

Which of the following statements is NOT correct? Multiple Choice The description of a journal entry should include a reference to the source of the information contained in the entry. If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction. The credit portion of a general journal entry is always recorded first. A firm should be able to trace amounts through the accounting records and back to their source documents.

Answer 1

Answer:

The credit portion of a general journal entry is always recorded first.

Explanation:

A journal entry involves the process of keeping the records of business transactions made by an organization.

The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.

Also, the total amount of money credited must equal the total amount of money debited.

The following statements are correct and true about the general journal;

I. The description of a journal entry should include a reference to the source of the information contained in the entry.

II. If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction.

III. A firm should be able to trace amounts through the accounting records and back to their source documents.