What accounting process involves transferring journal entries to accounts in the general ledger?

The process of transferring journal entries to accounts in the general ledger is known as posting. This step is crucial in the accounting cycle as it consolidates information from various journal entries into the general ledger, which serves as a comprehensive record of all financial transactions for a business. By posting, each individual entry from the journal, which captures detailed transactions in chronological order, is assigned to the correct account within the ledger, enabling an organized and systematic way to track the financial status of the organization.

The general ledger is foundational for generating financial statements and conducting further analysis of financial performance. By ensuring that all journal entries are accurately and timely posted, businesses can maintain accurate records vital for decision-making and reporting.