An explanation of why a transaction is necessary is entered into the general journal. what is the term for the explanation?

Question: An explanation of why a transaction is necessary is entered into the general journal. what is the term for the explanation?

The term for the explanation of why a transaction is necessary that is entered into the general journal is "narration".

A narration is a brief statement or explanation that accompanies a transaction recorded in the general journal. It provides additional information about the transaction, such as the purpose, reason, or context of the transaction.

The narration is typically included after the debit and credit entries in the journal entry, and is usually preceded by the abbreviation "NARR" or "EXPL". This helps to provide clarity and context to the journal entry, and can be useful for future reference or analysis.

Including a narration in the general journal is important for maintaining accurate financial records, as it provides a clear and concise explanation of the transaction and helps to prevent misunderstandings or errors.

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