| A | B |
|---|
| Ledger | A group of accounts. |
| General Ledger | A ledger that contains all the accounts needed to prepare financial statements. |
| Account Title | The name given to an account. |
| Account Number | The number assigned to the account. |
| File Maintenance | The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. |
| Opening an Account | Writing an account title and number on the heading of an account. |
| Two parts of an account number | The first digit shows the general ledger division in which the account is located. The second two digits indicated the location of each account within a general ledger division. |
| Posting | Transferring information from a journal entry to a ledger account. |
| Two rules for posting amounts from a journal. | 1. Separate amounts in a journal's general amount columns are posted individually to the account written in the Account Title column. 2. Separate amounts in a journal's special amount columns are not posted individually. |
| Three purposes of the Post Ref. numbers | 1. Amount can be traced to its source in a journal. 2. An entry in a journal can be traced to where it was posted in an account. 3. If posting is interrupted, the accounting personnel can easily see which entries in the journal still need to be posted. |
| Last step in posting | Recording post reference. |
| Correcting entry | Correcting an incorrect journal entry with an additional one. |
