CSLB Contractor's Law & Business Exam 2025 – 400 Free Practice Questions to Pass the Exam

Bookkeeping journals should be posted to the general ledger at the end of each month. The general ledger serves as the primary accounting record where all financial transactions are summarized and categorized. It compiles information from various journals, including sales, purchases, and cash receipts, providing a comprehensive view of the company’s financial standing.

The general ledger is structured to allow for easy tracking of individual accounts through debit and credit entries associated with transactions recorded in the bookkeeping journals. By posting to the general ledger, a business ensures that its financial statements, such as the balance sheet and income statement, are accurate and reflect all activities for the reporting period.

The other records, such as accounts receivable, accounts payable, and payroll records, are specific subcategories that are more focused in nature. While these accounts do receive their transactions from the general ledger, they do not serve as the primary record for the posting of all bookkeeping journal entries. Each has its own role within the broader accounting framework but does not replace the general ledger's function in compiling overall financial data.