What Is the Main Purpose of a General Ledger Master

question 6

Multiple Choice

What is the main purpose of a general ledger master file?

• A) To store account balances to be presented in reports
• B) To match up account numbers in files
• C) To store temporary records pertaining to a group of like transactions
• D) To store detailed information about subsidiary ledger control accounts

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Definitions:

Business Risk

The exposure a company or investor faces due to uncertainties in the market or industry, impacting the company's ability to generate profits.

Financial Risk

The possibility of losing money on an investment or business venture, including risks related to currency, interest rates, and solvency.

Debt/Equity Ratio

A ratio exemplifying the balance of equity to debt in the financing structure for a company’s assets.

Interest Tax Shield

A deduction allowed for the interest paid on debt, thereby reducing taxable income and the total tax owed.