What is the term for a ledger that contains all accounts needed to prepare financial statements?

The term that describes a ledger containing all accounts needed to prepare financial statements is the general ledger. This ledger serves as the primary accounting record where all financial transactions are recorded and summarized. It includes accounts for assets, liabilities, equity, revenues, and expenses, thereby providing a comprehensive view of the organization’s financial position.

The general ledger is crucial for the preparation of financial statements such as the balance sheet and income statement because it consolidates all financial data into a single source. This allows accountants to track all financial activities, ensuring accuracy and completeness in reporting.

Other types of ledgers serve different purposes. For instance, subsidiary ledgers are used to keep detailed records for specific accounts that are summarized in the general ledger, while controlling accounts represent a summary in the general ledger of transactions processed in the subsidiary ledger. File maintenance involves the processes of managing and organizing data records rather than a specific type of ledger.