accounting review chapter 7

Posting

the process of transferring the debit and credit information from the journal to individual accounts is called

slide

when an amount such as $90 is written $900 a ___ error has occurred

write date in column of ledger

1

write journal page number in post reference column of ledger

2

Write debit or credit amount in general ledger

3

write new balance for the debit or credit column balance

4

write ledger account number in the post reference of the general journal

5

correcting entry

A _____ must be made when an error in a journal entry is discovered after posting.

transposition error

A _____ results when two numbers are accidentally reversed.

Trial Balance

A ______ is a proof of the equality of total debits and total credits.

ledger account form

A ______ is the accounting stationery used to record financial information about specific accounts

ledger

A ___is a book or file that contains the pages or cards for the accounts used by business

proving the ledger

Adding all debit balances and all credit balances of ledger accounts, and then comparing the two totals to see whether they are equal.

Every journal entry requires a posting to at least three ledger accounts

F

a trial balance is prepared before posting

F

all businesses do their posting daily

F

to avoid forgetting a step in the posting process, always post from right to left

F

you can easily see the increases and decreases taking place in the accounts of a business by looking at the general journal entries

F

A dash across the debit balance column shows that an asset account has a zero balance

T

An account may be opened by writing the account title and account number on the account form

T

Errors discovered after posting has occurred should be corrected by drawing a line through the incorrect item and writing the correction above

T

Posting to the ledger is the fourth step in the accounting cycle

T

The accounts of a business are kept in a special book called a ledger

T

if the trial balance is not in agreement, an error has been made in either journalizing or posting

T

the first step in posting is to write the date of the journal entry in the Date column of the account debited

T

the purpose of a trial balance is to prove the equality of the ledger

T