Explain the Purpose and Contents of the General Ledger Master

question 38

Essay

Explain the purpose and contents of the general ledger master file.

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Definitions:

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recorded as assets until they are consumed or the service is provided.

Supplies

One type of asset acquired by a firm; it has a much shorter life than equipment.

Issuance

The process of distributing or releasing something official, such as a document, stock, or currency.

Common Stock

Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.