The principal purpose of posting is to
A) enter transactions directly into the ledger.
B) help identify errors made in the journal.
C) obtain updated account balances.
D) help determine if the financial statements are ready to be prepared.

Question

Quizplus · Accepted Answer

The principal purpose of posting is to update account balances, so option C is the most suitable answer. Option A is not correct because transactions are first recorded in the journal and then posted to the ledger. Option B is a benefit of posting, but it is not the principal purpose. Option D is not correct because posting is the process of transferring journal entries to the ledger; it does not determine if the financial statements are ready to be prepared.

The Principal Purpose of Posting Is to