What is the purpose of the posting process?

• A. To verify trial balance matches the general ledger.
• B. To prepare financial statements from journal entries.
• C. To transfer journal entry amounts to the general ledger accounts to accumulate balances.
• D. To record only in the cash ledger.

Answer: (C)

Posting transfers the amounts from journal entries into the general ledger accounts, so each account shows its running balance. This step turns individual transactions into cumulative balances by account, which you need to prepare a trial balance and, later, the financial statements. For example, a journal entry that records a sale updates the appropriate accounts (like cash or accounts receivable and revenue) when posted, reflecting their current balances. The posting process is why those aggregated ledger balances exist—to provide a complete view of each account’s total activity.