What step in the accounting cycle is the posting process?
4th
What is the purpose of posting?
To show effects of business transactions on business accounts
How is the information posted in the ledger accounts helpful to the business owner or manager?
Accounts give a clear picture of what is happening in the business, aiding in decision making
What two steps are required to open a ledger account with a zero balance?
(A) write the account name (B) write the account number
What six steps are required to open a ledger account that has a balance?
(A) write the account name (B) write the account number (C) enter the date (D) write "balance" in the description column (E) place a check mark in the PR column (F) enter the balance in the debit or credit balance column
What determines the frequency of posting?
The size of the business, number of transactions, and whether posting is done manually or by computer
List the steps in the posting process?
(A) enter date (B) leave description column bank (C) enter journal page reference (D) enter debit amount (E) compute account balance (F) write debited account number in journal PR column (G) repeat steps a-f for credit entry
Although the Description column is a general ledger account is often left blank, what do some businesses record there?
the source document number
What two things are indicated by the journal posting reference?
the entry has been posted and the accounts to which it was posted
How is a zero balance shown in a ledger account?
a dash across the balance column
What steps should be followed to locate trial balance errors?
(A) re-add columns (B) look for transpositions, slides, amounts entered in column (C) check accuracy of account balances (D) recompute account balances (E) verify postings
How does an accounting clerk correct a journal entry that has not been posted?
drawing a line through an incorrect entry; write the correction above it
How does an accounting clerk correct an error in a journal entry that was posted?
by making a correcting entry