Accounting Certification Practice Test 2026 – Complete Online Preparation

The general ledger serves as the main accounting record where all financial transactions of a business are systematically recorded. It contains detailed accounts of assets, liabilities, equity, revenues, and expenses, allowing accountants and financial professionals to track the financial health of an organization. By maintaining this comprehensive record, a business can ensure that all financial data is organized, facilitating accurate reporting and analysis.

Choosing this option aligns with the essential role that the general ledger plays in the accounting cycle. It aggregates transactions from sub-ledgers, ensures double-entry accounting principles are observed, and ultimately serves as the foundation for preparing financial statements. The other choices may relate to aspects of accounting but do not reflect the fundamental purpose and scope of a general ledger, which is to provide a complete picture of all financial activity within the business.