Multiple choice technology packaged enterprise solutions

The main purpose of general ledger is to __________________

  1. A. record financial activity of a company and to produce financial and management reports

  2. B. Receive payments from the customer

  3. C. Pay the invoices to the suppliers

  4. D. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Record financial activity and produce reports is correct because the core purpose of a general ledger is to accumulate all financial transactions and generate financial statements (balance sheet, income statement) and management reports for decision-making. Receiving payments and paying invoices are subledger functions (AR/AP), not GL purposes.

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