Question

the first step in the journalizing and posting process is to

a. record the transaction in the journal
b. decide whether each account increases or decreases
c. identify the accounts involved and the account type
d. post the journal entry to the ledger

Explanation:

In the journalizing and posting process, the first step is to identify the accounts involved and their types. This is because before recording or posting, you need to know which accounts are affected and what kind of accounts they are (e.g., asset, liability, equity, revenue, expense). Option A is recording in the journal, which comes after identifying accounts. Option B is about determining increase/decrease, which is after identifying accounts. Option D is posting to the ledger, which is a later step. So the correct step is identifying accounts and their types.

Answer:

C. identify the accounts involved and the account type