1. The purpose of posting is to:

   		record the transactions in chronological order in the journal.
   		provide an explanation of the transaction.
   		update the account balances in the ledger.
   		correct a previous entry.

QUESTION 2

1. Posting is performed by transferring information from the journal to the:

   		balance sheet.
   		trial balance.
   		ledger.
   		income statement.

QUESTION 3

1. The general ledger:

   		lists the customer names.
   		is the book of final entry.
   		lists the transactions in chronological order.
   		is before the general journal.

QUESTION 4

1. "PR" in the general journal and general ledger stands for:

   		per reviewer.
   		posting reference.
   		prior receipt.
   		post review.

QUESTION 5

1. The posting reference column in the ledger is:

   		used to record the journal and page number the transactions originated.
   		used to record the ledger number.
   		used to record the date.
   		not used.

QUESTION 6

1. A credit to a liability account was posted to the capital account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		owner's equity to be understated.
   		net income to be overstated.

QUESTION 7

1. A credit to an asset account was posted to a revenue account. This would cause:

   		assets to be understated.
   		liabilities to be overstated.
   		capital to be understated.
   		revenue to be overstated.

QUESTION 8

1. A credit to an asset account was posted to an expense account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		capital to be understated.
   		expenses to be understated.

QUESTION 9

1. A debit to an expense account was posted to an asset account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		capital to be understated.
   		expenses to be overstated.

QUESTION 10

1. A debit to the Capital account was posted to an expense account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		capital to be overstated.
   		expense to be overstated.