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Which of these facts about a ledger is not correct?

  • a) 
    A ledger describes the inputs and outputs of a business
  • b) 
    A ledger consists of transactions, often governed by contracts
  • c) 
    A ledger is used purely for reporting of cash
  • d) 
    A ledger is a system of record
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which of these facts about a ledger is not correct?a)A ledger describe...
The ledger provides a complete record of financial transactions over the life of the company. The ledger holds account information that is needed to prepare financial statements and includes accounts for assets, liabilities, owners' equity, revenues and expenses.
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Most Upvoted Answer
Which of these facts about a ledger is not correct?a)A ledger describe...
Explanation:

  • A ledger is a system of record that describes the inputs and outputs of a business. It is used to keep track of financial transactions and provides a complete record of all financial activities.

  • A ledger consists of transactions, often governed by contracts, which are recorded in chronological order.

  • While a ledger is used to report cash transactions, it is not used purely for reporting of cash. It can also be used to record other types of transactions such as sales, purchases, expenses, and other financial activities.



Therefore, option C is not correct as it implies that a ledger is used solely for reporting cash transactions, which is not true.
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Community Answer
Which of these facts about a ledger is not correct?a)A ledger describe...
Yes
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Which of these facts about a ledger is not correct?a)A ledger describes the inputs and outputs of a businessb)A ledger consists of transactions, often governed by contractsc)A ledger is used purely for reporting of cashd)A ledger is a system of recordCorrect answer is option 'C'. Can you explain this answer?
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Which of these facts about a ledger is not correct?a)A ledger describes the inputs and outputs of a businessb)A ledger consists of transactions, often governed by contractsc)A ledger is used purely for reporting of cashd)A ledger is a system of recordCorrect answer is option 'C'. Can you explain this answer? for IT & Software 2024 is part of IT & Software preparation. The Question and answers have been prepared according to the IT & Software exam syllabus. Information about Which of these facts about a ledger is not correct?a)A ledger describes the inputs and outputs of a businessb)A ledger consists of transactions, often governed by contractsc)A ledger is used purely for reporting of cashd)A ledger is a system of recordCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for IT & Software 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of these facts about a ledger is not correct?a)A ledger describes the inputs and outputs of a businessb)A ledger consists of transactions, often governed by contractsc)A ledger is used purely for reporting of cashd)A ledger is a system of recordCorrect answer is option 'C'. Can you explain this answer?.
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