The journal is a tool that is used during transactional analysis. What statement is true regarding the advantages of the journal?

Debits and credits are not listed on the journal.

The financial statements can be created directly from the journal.

It promotes ease of finding mistakes in the journal transaction.

Transactions are recorded by account type.

1 answer

The statement that is true regarding the advantages of the journal in transactional analysis is:

The financial statements can be created directly from the journal.

This is because the journal serves as the initial record of all transactions, and from this complete record, financial statements can be constructed by summarizing the data.