10RQ - Horngren'S Financial And Managerial Accounting

Question

Where are transactions initially recorded?

Step-by-Step Solution

Answer

The transaction is an exchange of good or service for some price consideration between two parties and in accounting the transactions are firstly recorded in the journal.

Definition of Transaction

The transaction is defined as the agreement which is completed between the buyer and seller for the exchange of goods, services, or financial assets with money.

Initially recording the transactions

After the review of the source of source documents, all the business transactions are firstly recorded in the journal. This means the first step of accounting is journalizing transactions.