The Accounting Process of Transferring a Transaction from the Journal

question 25

Multiple Choice

The accounting process of transferring a transaction from the journal to the ledger is called ________.

• A)journalizing
• B)posting
• C)compounding
• D)sourcing

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Definitions:

Adjusting Entry

Adjusting entries are journal entries made in accounting to update ledger accounts at the end of a reporting period, ensuring that revenues and expenses are recognized in the period they occur.

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms for the payment of claims in the event of a covered loss.

Insurance Expense

The cost allocated to a period for holding insurance policies, protecting against various risks.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net income or loss.