Utah General Contractors - Business and Law Practice Exam

Where is information from a business journal commonly posted?

1. In the financial projection

2. In bank statements

3. In the general ledger

4. In the employee record

The correct answer is: In the general ledger

The correct answer is that information from a business journal is commonly posted in the general ledger. The general ledger serves as the central repository for a company's financial data, where all financial transactions are recorded in detail. When transactions are first recorded in a business journal, they are typically categorized and later posted to the general ledger, which organizes them by account. This process ensures that the financial statements produced by the general ledger reflect all transactions accurately, allowing for effective tracking of income, expenses, assets, liabilities, and equity. The general ledger is essential for maintaining a comprehensive view of the company's financial health. The other options do not align with where journal information is commonly posted. Financial projections are estimates about future financial performance and not a record of past transactions. Bank statements reflect the transactions that have cleared a bank account, rather than internal financial records. Employee records are focused on personnel information and do not encompass financial transaction details from a business journal.