Overview
Accounting ledgers are vital tools for businesses, providing a structured way to record and summarize financial transactions. They help ensure accuracy in financial reporting and facilitate better decision-making. Ledgers can be categorized into general and subsidiary types, each serving a unique pu...
Key Terms
Example: The company maintains a ledger to track all sales and expenses.
Example: The general ledger includes accounts for assets, liabilities, and equity.
Example: Accounts receivable is a subsidiary ledger that details customer transactions.
Example: The chart of accounts includes categories like revenue, expenses, and assets.
Example: When a sale is made, cash increases and sales revenue increases.
Example: When inventory is purchased, it is recorded as a debit.