Multiple choice

Which book of source entry gets greater importance as legal evidence than the ledger?

  1. Balance sheet

  2. Profit and loss account

  3. Journal

  4. Cash book
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The journal is known as the book of original entry because it is where transactions are first recorded in chronological order. Because it provides the first-hand, detailed account of a transaction, it is often considered more reliable legal evidence than the ledger.

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