In accounting information systems, the general ledger is also commonly referred to as which ledger?
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Amain ledger
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Bextra ledger
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Cnominal ledger
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DAll of the above
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ENone of the above
Answer
Correct Answer: nominal ledger
Explanation
Introduction / Context: The general ledger is the central repository for an organization’s financial data. Different jurisdictions and textbooks may use alternative names, and understanding synonyms avoids confusion in exams and professional practice.
Given Data / Assumptions:
- We are referring to the standard ledger containing all nominal accounts.
- Terminology aligns with common accounting usage.
Concept / Approach: The term “nominal ledger” is widely used as a synonym for the general ledger, reflecting its inclusion of nominal (income, expense, capital) accounts that ultimately feed into financial statements.
Step-by-Step Solution:
Identify accepted synonym: “nominal ledger.” Exclude nonstandard phrases like “extra ledger.” Recognize that “main ledger” is informal, not the conventional synonym. Select “nominal ledger.”Verification / Alternative check: Accounting references often equate general ledger with nominal ledger; subsidiary ledgers (e.g., receivables) post to it.
Why Other Options Are Wrong: “Main ledger” is vague; “extra ledger” is not a recognized term; “All” cannot be right because incorrect terms are included.
Common Pitfalls: Confusing general (nominal) ledger with subsidiary ledgers; mixing local jargon with standardized terms.
Final Answer: nominal ledger