21. Transactions are entered in the ledger accounts and then transferred to journals.
22. All business transactions must be entered first in the general ledger.
23. A simple journal entry requires only one debit to an account and one credit to an account.
24. A compound journal entry requires several debits to one account and several credits to one account.
25. Transactions are recorded in alphabetic order in a journal.
26. A journal is also known as a book of original entry.
27. The complete effect of a transaction on the accounts is disclosed in the journal.
28. Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.
29. The general ledger contains all the accounts that are reported on the statement of financial position, whereas the general journal contains all the accounts that are reported on the income statement.
30. The chart of accounts lists accounts and the account numbers that identify their location in the ledger starting with the accounts that are reported on the income statement.