YouScience Accounting 1 Practice Exam

The journal entry serves as the source for postings to the:

Ledger Trial balance Bank statement Annual report

Correct Answer:

Ledger

Explanation:

In double-entry accounting, transactions are first recorded in the general journal with debits and credits, and those journal entries are then posted to the individual accounts in the general ledger. The ledger compiles all postings by account, giving running balances for each account, so the journal entries provide the source data for those postings. From the ledger, you generate the trial balance and financial statements; bank statements come from external bank records, and the annual report summarizes the financial statements rather than serving as the posting source.

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