A ledger is used to: Multiple Choice summarize the increases and decreases in individual accounts, as well as the ending balance. report the results of operations to stockholders, creditors, and managers. prove that debits equal credits.

The ledger is like the heartbeat of accounting, buzzing with activity as it records every financial transaction! By summarizing the increases and decreases in individual accounts, it ensures that businesses can track their financial health over time, aiding in better decision-making and strategic planning. It’s an essential tool for maintaining transparency and coherence in financial management. In real-world applications, ledgers are crucial for businesses of all sizes, from small startups to giant corporations. These records help manage cash flow, prepare financial statements, and even get loans. With digital accounting software on the rise, traditional ledgers are evolving, but their fundamental purpose of ensuring accurate financial tracking remains a timeless principle in the business world!