What does the main ledger record in accounting?

The main ledger, often referred to as the general ledger, plays a crucial role in accounting by serving as the complete record of all financial transactions of a business. This includes not only revenue but also expenses, assets, liabilities, and equity transactions.

By recording all transactions, the main ledger offers a comprehensive view of a company’s financial performance and position, allowing for accurate reporting and financial analysis. Every monetary event – whether it involves incoming resources such as revenue, outgoing expenditures for operations, liabilities to be settled, or investments by owners – is captured, providing a complete financial picture necessary for effective management and decision-making.

This holistic approach enables businesses to track the flow of funds, understand their financial standing, and comply with accounting standards and regulations. The other options suggest a limited scope of recordings, which does not reflect the reality of how the main ledger functions in capturing the entirety of a business’s financial activities.