Question

Is my response correct?

Q: List at least two rules that apply when recording journal entries.

A: There must be a minimum of two line items in a journal entry, though there is no upper limit to the number of line items that can be included. Entries need to be in chronological order according to when they occurred.

Answer 1

Yes, your answer is correct because;

Followings two rules are correct with reference to recording of journal entries;

1. There must be a minimum of two line items in a journal entry, though there is no upper limit to the number of line items that can be included.

As we know that while making journal entry then there must be two line items in a journal entry because every journal entry must contain two accounts although there is no upper limit to the number of line items that can be included because there may be many accounts included in a compound journal entry hence this rule is correct.

2. Entries need to be in chronological order according to when they occurred. This rule is also correct because we have to make journal entries in chronological order as per occurrence of the business transactions hence this is a rule for making journal entries.