Accounting & auditingLesson 3 of 5 in the course Double-entry bookkeeping

General Ledger Accounts, Posting, and Trial Balances

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

Save course
Lesson progress
0 / 5

Your progress is kept in this browser only.Sign up to save it

Summary

A general ledger is the central record that organizes an organization’s financial accounts and transactions. It receives entries from journals and detailed information from subledgers, helping an organization track its financial activity and prepare financial statements.

A general ledger is the collection of an organization’s accounts and the records posted to them. It is the system of record for the organization’s financial transactions. A ledger account is created for each account listed in the organization’s chart of accounts.

All flashcards

What is a general ledger?
The organized collection of an organization’s ledger accounts and its system of record for financial transactions.
What does posting mean in accounting?
Transferring transaction amounts from journals to the relevant general ledger accounts.
How do journals, subledgers, and the general ledger relate?
Journals record transactions for posting to general ledger accounts. Subledgers hold detailed records for particular areas, and their totals may be summarized in the general ledger.
What does a trial balance check?
Whether total debit balances equal total credit balances; equality does not guarantee that all entries are correct.
What is the accounting equation?
Assets = Liabilities + Owner’s or Shareholder’s Equity.

Quiz questions

  1. What is the general ledger?Answer: The central collection of accounts used to record an organization’s financial transactions.
  2. What is the purpose of a subledger?Answer: To keep detailed records for a particular area, such as receivables or payables.
  3. In a ledger account, where are debits and credits recorded?Answer: Debits on the left side and credits on the right side.
  4. What is a trial balance, and what does it check?Answer: An extraction of account balances that checks whether total debits equal total credits.
  5. In double-entry bookkeeping, what is recorded for each entry?Answer: Equal total amounts of debits and credits across accounts.

Based on the Wikipedia article General ledger, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.

More in Accounting & auditing

All Accounting & auditing lessons
Accounting & auditingIncome Statement Analysis: From Sales to EBITDA5 flashcards · 5 quiz questions · 4 gamesPlay free →Accounting & auditingDepreciation: Cost Allocation, Methods, and Tax Treatment5 flashcards · 5 quiz questions · 4 gamesPlay free →Accounting & auditingOperating Efficiency Ratios: Receivables, Assets, and Inventory5 flashcards · 5 quiz questions · 4 gamesPlay free →Accounting & auditingInternal Auditing: Governance, Risk, Controls, and Professional Practice5 flashcards · 5 quiz questions · 4 gamesPlay free →Accounting & auditingIncome Statements: Sales, Profit Calculation, and Cash-Flow Distinctions5 flashcards · 5 quiz questions · 4 gamesPlay free →Accounting & auditingFIFO and LIFO as Inventory Cost-Flow Assumptions5 flashcards · 5 quiz questions · 4 gamesPlay free →