Which of the following images correctly shows the most complete and accurate general ledger?

• A. Image C: Lists only debit entries for each account, omitting credits.
• B. Image A: Contains all account titles, correct balances, and includes both debit and credit entries for each transaction.
• C. Image B: Shows only account titles and ending balances, without transaction details.
• D. Image D: Displays account titles with random numbers, lacking transaction dates and balances.

Answer: (B)

Verified step by step guidance

1. Understand the purpose of a general ledger: A general ledger is a complete record of all financial transactions for a company, organized by account. It includes both debit and credit entries for each transaction, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced.
2. Evaluate the characteristics of a complete and accurate general ledger: It should contain all account titles, transaction details (dates, descriptions, amounts), and both debit and credit entries for each transaction. Additionally, it should show the running balances for each account.
3. Analyze Image C: This image lists only debit entries for each account, omitting credits. Since a general ledger must include both debit and credit entries to reflect the dual nature of transactions, Image C is incomplete and inaccurate.
4. Analyze Image B: This image shows only account titles and ending balances, without transaction details. A general ledger must include transaction details to provide a full record of financial activity, making Image B incomplete.
5. Analyze Image D: This image displays account titles with random numbers, lacking transaction dates and balances. Without proper transaction details and balances, Image D fails to meet the requirements of a complete and accurate general ledger. Therefore, Image A is the correct choice as it contains all account titles, correct balances, and includes both debit and credit entries for each transaction.