What is the process of writing an account title and number on the heading of an account called?

• A. Journalizing
• B. Closing an account
• C. Opening an account
• D. Posting

Answer: (C)

Verified step by step guidance

1. Understand the concept of 'Opening an account': This refers to the process of creating a new account in the ledger by writing the account title and assigning a unique account number in the heading of the account.
2. Recognize the purpose of opening an account: It is done to ensure proper classification and tracking of financial transactions within the accounting system.
3. Learn the steps involved in opening an account: First, determine the type of account (e.g., asset, liability, equity, revenue, or expense). Then, assign a unique account number based on the chart of accounts used by the organization.
4. Write the account title: The account title should clearly describe the nature of the account, such as 'Cash,' 'Accounts Receivable,' or 'Utilities Expense.'
5. Assign the account number: The account number is typically a numeric or alphanumeric code that helps identify the account in the ledger and facilitates efficient posting of transactions.