Future Business Leaders of America (FBLA) Accounting Practice Test

What is indicated by footings in accounting?

1. Summation of account balances

2. Column total written in small pencil figures

3. The final accounts after closing entries

4. Projected revenue for the next period

The correct answer is: Column total written in small pencil figures

Footings in accounting refer specifically to the column total written in small pencil figures. This practice is commonly used in spreadsheets or manual calculations to denote the total sums calculated at the bottom of a series of numbers. By placing the total in small figures, it serves as a useful visual cue for anyone reviewing the document, signifying that this total is derived from the previous data entries in that column. The other options, while related to accounting concepts, do not accurately define what footings denote. The summation of account balances represents a broader concept of financial balances across accounts rather than the specific notation aspect that footings involve. Similarly, the final accounts after closing entries address the results of financial activities but do not pertain to the formatting of calculation totals. Projected revenue, on the other hand, is a forecast based on various factors and does not relate to the notational practice of indicating totals in a column.