A general ledger is best defined as what?

A general ledger is best defined as a record of financial transactions over the life of a company because it serves as the central repository where all financial data is compiled and maintained. This includes various types of accounts such as assets, liabilities, equity, revenue, and expenses, allowing for a comprehensive view of the company’s financial activity. The general ledger not only captures every transaction but also enables the preparation of financial statements and audit trails, making it an essential part of a company's accounting system.

The general ledger reflects the cumulative history of all transactions, providing detailed insights into the financial status of the business across multiple accounting periods. By maintaining this record, accountants can ensure accurate financial reporting and analysis, which is critical for decision-making processes in a business.