PRC-1 · Chapter 3 · Question 24 of 100
Which of the following statements comprehensively defines the 'General Ledger'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is also known as the nominal ledger and contains all accounts of assets, liabilities, income, expenses, capital, and drawings.
Explanation
The General Ledger (or nominal ledger) holds the main T-accounts or running balance accounts for all financial elements—assets, liabilities, equity, income, and expenses—excluding the detailed individual subsidiary accounts if control accounts are used.
More Ledgers and Trial Balance MCQs
- Q26What is the correct double-entry sequence to formally transfer a net profit of Rs. 250,000 to the owner's equity at year-end?
- Q27Which of the following lists represents the correct sequential order of the fundamental accounting cycle?
- Q28When posting data from the Cash Book, how are individual payments made to credit suppliers processed in a manual ledger system?
- Q29The 'Payables Ledger' is also commonly referred to by which alternative name in accounting terminology?
- Q30When 'Velocity Logistics' receives a credit note from a supplier for returned defective goods, into which specific ledger is this…