Question

which of the following describes a general ledger? ○ the general ledger combines sales and expenses to determine the net income of a business. ○ the general ledger describes all liability accounts. ○ the general ledger is a record of all transactions in alphabetical order. ○ the general ledger is a record containing all accounts used by a company. need help? review these concept resources. read about the concept

Explanation:

• The first option describes the function of an income statement, not a general ledger.
• The second option is incorrect because a general ledger includes all account types (assets, liabilities, equity, revenues, expenses), not just liability accounts.
• The third option is wrong because general ledger accounts are organized by account type (not alphabetical order), with transactions recorded chronologically within each account.
• The correct definition of a general ledger is a comprehensive record that holds all the accounts a company uses to track its financial activity.

Answer:

The general ledger is a record containing all accounts used by a company.