What is the process called when data is transferred from the journal to the ledger?

The process of transferring data from the journal to the ledger is known as posting. This step is crucial in the accounting cycle as it involves taking the details recorded in the journal—where transactions are first documented chronologically—and organizing that information into the ledger. The ledger provides a categorized collection of accounts, which allows for more straightforward tracking of financial transactions related to specific accounts, such as assets, liabilities, and equity.

By posting, accountants ensure that all financial information is organized and accurately reflects the financial position of the entity. This reduces errors in retrieving transaction data during the preparation of financial statements and enables a clear overview of each account's activity over a specified period.

Journaling refers to the initial recording of financial transactions, while reconciliation involves comparing two sets of records to ensure they match, and recording is the broad term for entering information into any financial record. Each of these terms refers to a different step or aspect of the accounting process, highlighting the distinct role that posting plays in transferring information systematically from the journal to the ledger.