What does the term "general journal" refer to in accounting?

The term "general journal" in accounting refers specifically to the initial book of entry for all transactions. In this context, the general journal is where all financial transactions are first recorded in chronological order before they are posted to the respective accounts in the general ledger. This systematic approach allows for detailed documentation of each transaction, providing a clear audit trail.

When a business incurs transactions, they are first entered in the general journal, capturing essential details such as the date, accounts affected, amounts, and descriptions. This practice ensures that all financial activities are tracked comprehensively, which is vital for accurate record-keeping and financial reporting.

The other options center around different accounting concepts. A record of fixed assets pertains specifically to long-term tangible assets rather than all transactions. A summary of income and expenses usually refers to financial statements like the income statement, which aggregates data rather than details specific transactions. A report on cash flow activities describes cash inflows and outflows but does not encompass all transactions recorded within the accounting system. Thus, the general journal serves as the foundational tool for recording all business transactions comprehensively.