What is the purpose of the libro diario?

The Libro Diario, also known as the General Journal, is an accounting record-keeping book used by businesses to record financial transactions in chronological order. Its purpose mainly revolves around providing a detailed and systematic account of every monetary event that occurs within an organization. The libro diario serves as a primary source of information for creating financial statements, preparing tax returns, and analyzing the financial health of a company. By consistently recording transactions such as sales, purchases, expenses, and other financial activities, this journal helps ensure accuracy and transparency in the organization's accounting practices, facilitating effective decision-making and compliance with legal and regulatory requirements.

This mind map was published on 18 October 2023 and has been viewed 73 times.