Discuss CIPS L5M6 Exam Topic 2 Question 15

What is a General Ledger?

AAn IT system that conducts tenders electronically

BAn IT system that prepares information for financial reporting

CA catalogue of products to buy and/or sell

DA list of approved suppliers

Suggested Answer: B

A General Ledger [GL] is the central accounting record used by businesses to prepare financial reports. It categorises all financial transactions into cost codes, allowing managers to track expenditure, revenue, assets, and liabilities.

For category managers, the General Ledger provides visibility into spend categories. This information supports spend analysis and helps in mapping organisational costs against suppliers, categories, and business functions. It differs from line item detail by offering a higher-level financial view.

Other options are misleading:

Option A [tenders] relates to e-procurement platforms, not financial records.

Option C [catalogue] refers to item listings, not ledgers.

Option D [supplier lists] relates to approved supplier databases.

By using GL data, procurement can ensure alignment with finance, strengthening compliance, budgeting, and strategic sourcing decisions.

[Ref: CIPS L5M6 Study Guide, p.135 -- Use of General Ledger in procurement analysis]

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17 comments · newest first

Man 2 months ago

Yes! B helps in preparing financial reports.

Margo 2 months ago

B is the best choice. It’s fundamental for accountants.

Shawnda 2 months ago

D is off too. General ledgers are more than supplier lists.

Erick 2 months ago

C is tempting, but it’s not about products.

Karma 2 months ago

Definitely B. It’s crucial for accurate financial statements.

Shalon 2 months ago

I’m not sure. A sounds interesting too, but not quite right.

Aretha 3 months ago

Agreed! B makes sense. General ledgers track financial data.

Louisa 3 months ago

I think it's B. It’s all about financial reporting.

Tiera 3 months ago

A General Ledger tracks all financial transactions, so B makes sense!

Emile 3 months ago

Not sure about B, seems too broad for a General Ledger.

Antione 3 months ago

Wait, I thought it was just a list of suppliers?

Arthur 4 months ago

Agreed, B is the right choice!

Stephaine 4 months ago

It's definitely B, helps with financial reporting.

Mila 4 months ago

I feel like the General Ledger is definitely not A or C, but I can't recall if it's strictly B or if it could also relate to D in some way.

Laquita 4 months ago

I'm a bit confused. I thought the General Ledger was more about tracking transactions rather than just preparing reports.

Dona 4 months ago

I remember practicing a question similar to this, and I think the answer is B. It makes sense that the General Ledger would be involved in financial reporting.

Vilma 4 months ago

I think the General Ledger has something to do with financial reporting, but I'm not entirely sure if it's just for preparing information or if it does more.

CIPS L5M6 Exam - Topic 2 Question 15 Discussion