Examples of Other Subsidiary Ledgers Besides Those for Accounts Receivable

question 107

Multiple Choice

Examples of other subsidiary ledgers besides those for accounts receivable and accounts payable may include all of the following except:

• A)Equipment.
• B)Cash.
• C)Payroll.
• D)Inventory.
• E)Investments.

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Definitions:

Variable Costing

An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.

Absorption Costing

A system of accounting that encompasses the full range of manufacturing costs—direct materials, direct labor, and overheads both variable and fixed, within the cost framework of a product.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a net profit of zero.

Eastern Division

A geographical or operational segment of a larger organization designated to cover the eastern part of a country or area.