Multiple choice

According to accounting process, which of the following sequences is best justified?

  1. Transaction, source document, journal entry, ledger, trial balance

  2. Transaction, source document, journal entry, trial balance, ledger

  3. Source document Transaction, journal entry, trial balance, ledger

  4. Source document, Transaction, journal entry, ledger, trial balance

  5. Source document, Transaction, ledger journal entry, trial balance
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A Correct answer
Explanation

Transactions occurs, then the source documents are reduced to debit and credit in form of journal entry, then posted to ledger and from ledger trial balance is prepared.

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