The general ledger can be used to determine which of the following?

• A. The market value of company assets
• B. The detailed list of all company employees
• C. The amount of cash on hand at the end of the period only
• D. The balance of each account at a specific point in time

Answer: (D)

Verified step by step guidance

1. Understand the purpose of the general ledger: The general ledger is a complete record of all financial transactions of a company, organized by accounts. It is used to track the balances of each account at a specific point in time.
2. Clarify what the general ledger does not provide: The general ledger does not provide information about the market value of company assets, as it records historical cost rather than fair market value. It also does not include non-financial data, such as a list of employees.
3. Identify the type of information the general ledger provides: The general ledger contains the balances of all accounts, including assets, liabilities, equity, revenues, and expenses, at a specific point in time. This is achieved through the posting of journal entries to the ledger.
4. Relate the general ledger to cash on hand: While the general ledger can show the cash account balance, it is not limited to cash alone. It provides the balances for all accounts, not just cash, at a specific point in time.
5. Conclude the correct answer: Based on the functionality of the general ledger, the correct answer is that it determines the balance of each account at a specific point in time.