Accounting Fundamentals Certification (AFC) Practice Test 2025 – The Comprehensive All-in-One Guide to Exam Success!

The process of transferring information from the journal to the individual general ledger accounts is known as posting. This step is crucial in the accounting cycle as it ensures that all financial transactions recorded in the journal are accurately reflected in the respective accounts within the general ledger. The general ledger serves as a comprehensive collection of all financial accounts, and to maintain its accuracy and reliability, each entry made in the journal needs to be posted to its corresponding ledger account.

Recording refers to the initial act of documenting transactions in the journal, while reconciliation is the process of ensuring that two sets of records (like the bank statement and the company's books) agree with each other. Summarizing involves compiling and presenting financial data in a summarized format, often for reporting purposes, but it does not encompass the specific act of transferring journal entries to ledger accounts. Thus, posting is the term that accurately describes the transfer of information from the journal to the general ledger.