Which term refers to the recording of charges and payments to accounts?

Which term refers to the recording of charges and payments to accounts?

• A. Aging schedule
• B. Endorsing
• C. Posting
• D. Adjustments

Answer: (C)

Recording charges and payments into the accounts is done through posting. Posting transfers transactions from the journal to the general ledger, updating each account with the appropriate debit and credit so balances reflect all activity. For example, a sale on account adds to accounts receivable and revenue when posted, and when a payment is received, posting updates cash and reduces accounts receivable. An aging schedule is a report showing receivables by age, not the act of recording transactions; endorsing is signing a check, and adjustments are later changes to balances after posting.

Recording charges and payments into the accounts is done through posting. Posting transfers transactions from the journal to the general ledger, updating each account with the appropriate debit and credit so balances reflect all activity. For example, a sale on account adds to accounts receivable and revenue when posted, and when a payment is received, posting updates cash and reduces accounts receivable. An aging schedule is a report showing receivables by age, not the act of recording transactions; endorsing is signing a check, and adjustments are later changes to balances after posting.