Accounting 11 Unit 8

The final step in the posting process is:

• taking off a trial balance

• recording the details in the particulars column of the ledger account

• recording the journal page in the ledger account Posting Reference column

• recording the account number in the journal posting references column.

Cross-referencing helps in the accounting process because:

• the accountant knows where to resume posing if the process has been interrupted

• entries in ledger accounts can be traced ack to the general journal

• entries in the journal can be traced to the accounts where they have been posted

• all of the other answers

An example of a transposition error is a(n)

• entry of $375 instead of $357

• entry of $100 recorded as $1000

• debit entry incorrectly recorded as a credit

• all of the other answers

Select the letter that lists the steps in the accounting cycle in their correct order.

1. accounting transaction occurs

2. a trial balance is prepared

3. accounting entries are posted

4. accounting entries are journalized

• 1,4,3,2

• 1,3,4,2

• 1,2,3,4

• 1,3,2,4

The balance column ledger account provides the accountant with an updated account balance after every transaction is recorded.

• true

• false

Accounting entries are first recorded in the journal.

• true

• false

The PR column of the general journal is where the page numbers of the ledger accounts are recoded.

• true

• false

Transferring information from the journal to the ledger is called posting.

• true

• false

Posting is the final step in the accounting cycle.

• true

• false

The figure that an accountant uses as the base amount when preparing a common-size balance sheet is:

• current assets

• fixed assets

• total assets

• none of the other answers