The correct answer is: C. Recording
Ledger posting is the process of recording financial transactions in a general ledger. It is the first step in the accounting cycle, and it is essential for maintaining accurate financial records.
Ledger posting involves recording the date, amount, and account affected by each transaction. The transactions are then classified into different accounts, such as accounts receivable, accounts payable, and inventory. This information is then used to prepare financial statements, such as the income statement and balance sheet.
Ledger posting is a critical part of financial accounting. It ensures that all financial transactions are recorded accurately and in a timely manner. This information is essential for making sound financial decisions and for complying with financial reporting requirements.
Here is a brief explanation of each option:
- A. Summarising: This is not the correct answer because ledger posting is not a process of summarising financial information. Ledger posting is a process of recording financial transactions in a general ledger.
- B. Classifying: This is not the correct answer because ledger posting is not a process of classifying financial information. Ledger posting is a process of recording financial transactions in a general ledger.
- C. Recording: This is the correct answer because ledger posting is a process of recording financial transactions in a general ledger.
- D. Interpreting: This is not the correct answer because ledger posting is not a process of interpreting financial information. Ledger posting is a process of recording financial transactions in a general ledger.