Which document is used for recording initial financial transactions?

The general journal is the correct document used for recording initial financial transactions. It serves as the primary book of accounts where all transactions are first logged in chronological order. Each entry includes details such as the date, accounts affected, amounts, and a description of the transaction. This process of recording is critical as it provides a foundational step for maintaining accurate financial records, ensuring that every transaction is documented before it is transferred to the general ledger.

In contrast, the general ledger compiles the information from the general journal and organizes it by account, while the trial balance is a report that summarizes all the balances in the ledger accounts to verify that total debits equal total credits. An income statement, on the other hand, is a financial report used to summarize revenues and expenses over a specific period, reflecting the profitability of the business, but it is not involved in recording transactions. Thus, the general journal plays a unique and essential role in the initial stage of financial record-keeping.