Which statement about the role of the general ledger is correct?

Which statement about the role of the general ledger is correct?

• A. It records only payroll and not other transactions.
• B. It is intended to replace journals as the initial entry.
• C. It is used solely for generating cash flow forecasts.
• D. It provides for the orderly and systematic recording of financial transactions, usually in summary form, as they have been recorded in the journals.

Answer: (D)