What is a ledger in accounting?

• A. Book of Accounts Where Journal Entries Are Posted
• B. Chronological Record Of Transactions
• C. Balance Sheet
• D. In Rem Jurisdiction

Answer: (A)

The key idea is understanding what a ledger does in accounting. A ledger is the book of accounts where journal entries are posted to individual accounts. After you record a transaction in the journal, you transfer (post) the amounts to the corresponding accounts in the ledger, updating each account’s running balance. This organization by account, rather than by date, lets you see how much activity has happened in each asset, liability, equity, revenue, and expense account overall. It’s from the ledger that you can compile a trial balance to check that debits equal credits and then prepare financial statements like the balance sheet and income statement. The other terms describe different things: a chronological record of transactions is the journal, a balance sheet is a financial statement, and in rem jurisdiction is a legal term unrelated to accounting.