CAF-5 · Chapter 5 · Question 2 of 10
In an accounting system where a business maintains separate records that are kept in agreement or are readily reconcilable, which ledger is maintained by the head office specifically to generate external reports?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The General Ledger
Explanation
Under a system where records are kept separate, it is convenient to think of the business split into two entities. The head office maintains the general ledger, which is used to generate external financial reports.
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