Accounting Fundamentals Certification (AFC) 2025 – 400 Free Practice Questions to Pass the Exam

The process of transferring journal entries to the general ledger is called posting. Posting involves taking the individual entries that have been recorded in the journal, which sort and categorize all transactions, and moving them to the appropriate accounts in the general ledger. The general ledger serves as a complete record of all financial transactions for the entities, organized by account.

This process is essential for maintaining accurate financial records, as the general ledger is the foundation for preparing financial statements. It creates a comprehensive summary of all transactions related to each account, allowing for easier tracking and analysis of financial performance over time.

In contrast, the other options describe different accounting functions: adjusting typically refers to modifying entries to reflect accrued revenues or expenses; summarizing is about compiling data for reports or financial statements; and recording is the initial step of entering transactions into the journal before they're posted to the general ledger.