A ledger is:
A) A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.
B) A journal in which transactions are first recorded.
C) A collection of documents that describe transactions and events entering the accounting process.
D) A list of all accounts with their debit balances at a point in time.
E) A record containing all accounts and their balances used by a company.

Question

Quizplus · Accepted Answer

A ledger is a record containing all accounts and their balances used by a company. It summarizes all of the financial transactions recorded in journals and provides a quick overview of the company's financial position. Choices A, B, and C are related to the accounting process, but do not specifically describe a ledger. Choice D is specific to a particular point in time and does not provide a comprehensive record of the company's financial transactions.

A Ledger Is