3. In the context of journal entries, what is the process of preparing a batch report from a point-of-sale (POS) terminal commonly referred to as?

• A. Batching out
• B. Reconciling bank statements
• C. Posting to the ledger
• D. Recording adjusting entries

Answer: (A)

Verified step by step guidance

1. Understand the context of the question: It is asking about a specific process related to journal entries and point-of-sale (POS) terminals.
2. Recognize that a POS terminal is used to record sales transactions, and at the end of a business day or shift, businesses often prepare a summary of all transactions processed.
3. Learn the term 'batching out': This refers to the process of preparing a batch report from the POS terminal, summarizing all transactions for reconciliation and record-keeping purposes.
4. Differentiate 'batching out' from other accounting processes: For example, reconciling bank statements involves comparing the company's records with the bank's records, posting to the ledger involves transferring journal entries to the general ledger, and recording adjusting entries involves making corrections to accounts at the end of an accounting period.
5. Conclude that 'batching out' is the correct term for the process described in the question, as it specifically refers to preparing a batch report from a POS terminal.