Which item best describes a journal entry?

• A. A record including date, accounts affected, amounts, and a brief description
• B. Only the total amount of the transaction
• C. A record of cash receipts only
• D. A narrative without account names

Answer: (A)

A journal entry records a business transaction with the date, the accounts involved, the amounts for each account, and a brief description of the transaction. This setup reflects double-entry accounting, showing how every debit and credit relate and providing a clear initial record before posting to the general ledger. The inclusion of date, accounts affected, and amounts ensures you can trace exactly what happened, when it happened, and how it impacts the books.

If you only have the total amount, you lose which accounts are touched and when the entry occurred. A record that captures only cash receipts is too narrow and doesn’t cover other types of transactions or the full effect on the accounts. A narrative without account names lacks the necessary detail to post accurately to the ledger and to understand the transaction’s impact.