Test your learning about the general ledger by answering the 10 short questions given below. We suggest that you try to answer each question yourself before clicking on the "See answer" button. If you find it difficult to answer any of these questions, read the article on the general ledger from the explanation section of this website.
1.
What is a ledger?
2.
What is meant by posting?
3.
What is meant by balancing?
4.
What methods are used to prepare ledger accounts?
5.
What is meant by balance?
6.
What is difference between debit balance and credit balance?
7.
What is meant by zero balance?
8.
What abbreviations are used for debit and credit?
9.
A ledger account has two sides: a left side and a right side. In bookkeeping and accounting, what are these two sides called?
10.
What is meant by the term "posting reference" (PR) in relation to a ledger account?
General Ledger Q&A FAQs
A General Ledger (GL) is a Financial Statement that shows the various assets, liabilities, and equity of a company at a given point in time. The GL can be used to track overall performance, assess the financial position, and make business decisions.
The GL receives input from all of a company's accounting transactions, including account entries, payments, and receipts. It then calculates balances for each account and produces Financial Statements.
The GL provides an overview of a company's overall financial health, making it an essential tool for business decision-making. Additionally, the GL can help businesses comply with financial regulations.
Some common functions of a General Ledger include recording transactions, preparing Financial Statements, and reconciling accounts. Additionally, a GL can help manage budgeting and Cash Flow processes.
To get started using a General Ledger, you'll need to set up your account and create journal entries. You can then use this information to produce Financial Statements.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
