The purpose of the ledger is to
A) keep a record of documentation to support each transaction.
B) make sure that all assets, liabilities, etc., have credit balances at all times.
C) record chronologically the day's transactions.
D) maintain a separate account for each asset, liability, etc.

Question

Quizplus · Accepted Answer

The purpose of the ledger is to maintain a separate account for each asset, liability, etc. This allows for accurate tracking of transactions and balances for each account. Choices A and C describe some aspects of ledger keeping, but do not fully capture its purpose. Choice B is incorrect as it is not a requirement for each account to have a credit balance at all times, as some accounts may have debit balances.

The Purpose of the Ledger Is to