Which of the following best describes a General Ledger?

The General Ledger serves as the central repository for financial data within an organization's accounting system. It provides a comprehensive summary of all financial transactions that occur over a specific period, detailing the changes in various accounts. This includes revenues, expenses, assets, liabilities, and equity. Each transaction is recorded in the General Ledger to develop a clear financial picture of the organization at any given time.

This option highlights the essential function of the General Ledger in synthesizing financial information, making it crucial for generating financial statements and ensuring accurate reporting. This summary ability is fundamental as it helps accountants and finance professionals track the overall financial health and operational performance of a business.