The Principal Ledger That Contains All the Balance Sheet and Income

question 60

True/False

The principal ledger that contains all the balance sheet and income statement accounts is the general ledger.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to prepare and present financial statements in a consistent manner.

Financial Statements

Comprehensive reports that provide information about a company's financial performance and position, including its income statement, balance sheet, statement of cash flows, and statement of shareholder equity.

Other Comprehensive Income

A financial accounting term representing the revenues, expenses, gains, and losses that are not included in net income, affecting the equity section of the balance sheet outside of net income.

Financial Statement Footnotes

Detailed explanations and additional information provided at the bottom of financial statements, clarifying specific line items.