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The General Ledger serves as the central repository for recording and tracking all financial transactions within a business entity. It encompasses the principles of accounting, including the double-entry system, and is used to maintain a comprehensive record of financial activities, enabling the preparation of financial statements such as balance sheets and income statements. The General Ledger provides a clear and organized structure for categorizing transactions according to their nature, ensuring compliance with relevant accounting standards and facilitating accurate financial reporting. It forms the foundation for cost accounting, which involves allocating and analyzing costs associated with various business activities, ultimately informing decision-making processes and driving operational efficiency.