Which of the following best describes a general ledger?

A general ledger serves as the central repository for a company's financial data, encompassing all financial transactions carried out within a specified period. This record includes detailed information about all accounts, such as assets, liabilities, equity, revenues, and expenses, allowing organizations to track their financial performance comprehensively. Each transaction is posted to the relevant accounts in the ledger, ensuring that the financial statements derived from it, such as the balance sheet and income statement, accurately reflect the company’s financial position.

Other options, like summarizing income and expenses or focusing only on bank transactions, represent narrower aspects of financial reporting or specific types of records rather than the all-encompassing nature of a general ledger. Additionally, while subsidiary ledgers can be part of the accounting system and used for more detailed reporting of specific accounts (like accounts receivable or accounts payable), the general ledger itself is distinct in that it consolidates all financial transaction data without limitation to particular categories.