Copying the debits and credits from the journal to the ledger is a process known as

• A. Journalizing
• B. Balancing
• C. Posting
• D. Adjusting

Answer: (C)

Transferring debits and credits from the journal to the ledger is called posting. In double-entry accounting, the journal records each transaction with its debit and credit amounts. Posting takes those amounts and update the individual ledger accounts, grouping all entries by account and revealing each account’s running balance. For example, a journal entry that debits Cash and credits Revenue would be posted to the Cash ledger account and the Revenue ledger account, increasing both balances accordingly. This step is essential because it moves information from the chronological journal to an account-by-account view that can be used to prepare trial balances and financial statements. Journalizing is the act of recording in the journal, while balancing is determining account balances, and adjusting refers to end-of-period adjustments.