nominal ledger
A 'nominal ledger' is a crucial accounting tool that records all financial transactions of a business, aiding in financial reporting and management.
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Definition
C1Accounting
(technical, business)The primary record where all financial transactions are categorized and stored, including assets, liabilities, income, and expenses.
Example
- The accountant updated the nominal ledger to ensure all transactions were accurately recorded.
- Financial statements are prepared based on the information in the nominal ledger.
C1Accounting
(technical, business)A component of the double-entry bookkeeping system where each transaction is recorded as both a debit and a credit.
Example
- The nominal ledger helps in maintaining the balance of debits and credits for each transaction.
Similar
Terms that have similar or relatively close meanings to "nominal ledger":