In accounting, what does a general ledger typically contain?

A general ledger is a fundamental component of accounting that serves as the primary record-keeping system for an organization. It contains a detailed record of all financial transactions over time, which includes various accounts such as assets, liabilities, equity, revenues, and expenses. Each transaction is recorded in the general ledger with specific details that allow for accurate tracking and reporting of the company’s financial status.

This detailed recording enables businesses to prepare their financial statements and other reports accurately, ensuring compliance with accounting standards and financial regulations. The general ledger allows for the reconciliation of accounts and reflects all changes in account balances due to the aforementioned transactions. By having a comprehensive record of all financial activities, the general ledger provides essential data for management decision-making and financial analysis.