What is defined as the group of accounts maintained by a company?

The group of accounts maintained by a company is known as the Chart of Accounts. This organizational tool lists all the accounts a company uses to record financial transactions, categorized into assets, liabilities, equity, revenue, and expenses. It provides a framework for the company’s accounting records and helps ensure that financial information is categorized consistently.

The General Ledger, while an important accounting tool, is not defined as the group of accounts but is rather a complete record of all financial transactions over the life of an organization, organized by account. It contains all the detailed entries that carry over from various subsidiary ledgers and accounts formed from the Chart of Accounts.

Account Balances refer to the amounts held in each account at a specific point in time, representing the net effect of all transactions recorded in that account. A Trial Balance is a statement that lists the balances of all accounts to verify that total debits equal total credits, but it does not define the group of accounts themselves.

Thus, the correct answer underscores the foundational role of the Chart of Accounts in an accounting system, serving as the basis upon which the General Ledger and other financial statements are built.