Consulting Case Interview Practice Questions

Answer -A - The first entry of a transaction takes place in the journal. A journal entry is made recording the transaction as a debit and a credit.

Key Takeaway: A journal entry is the first entry of a transaction in any accounting system. The journal entry consists of a debit entry and corresponding credit entry. These entries are then posted to the general ledger. The posting can occur as each transaction is input, but normally the posting occurs with a batch of journal entries. The general ledger contains the “T” accounts that illustrate the debit and credits to an account.