What is a posting reference in accounting?

A posting reference in accounting serves as a way to track and confirm that entries from the journal have been accurately transferred to the ledger. This reference typically includes page numbers or account numbers that indicate where the original entry can be found, effectively linking the two records. This tracking ensures accuracy and accountability in financial reporting, allowing accountants to easily cross-reference transactions between the journal and ledger.

While other options describe elements of accounting processes, they do not specifically pertain to the function of a posting reference. The summary of financial transactions for a specific period refers to financial statements or reports, and identifiers for journal entries in the ledger may refer to unique codes or descriptions used internally but do not capture the confirmatory aspect of posting references. Additionally, reports showing account balances relate to financial overview documents rather than the process of confirming the posting of journal entries to the ledger.