An Accounts Receivable Ledger Is A

question 25

Multiple Choice

An accounts receivable ledger is a:

• A)Subsidiary ledger that contains an account for each supplier (creditor).
• B)List of the separate accounts that show the balances outstanding from credit customers.
• C)Book of original entry that is designed and used for recording only sales on credit.
• D)Ledger that contains all financial statement accounts of a business.
• E)Subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.

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Definitions:

Historic Cost

The original monetary value of an asset or transaction at the time it occurred, without adjustments for inflation or other factors.

Partner Withdraws

Amounts taken out of a partnership by a partner for personal use, reducing the partner's capital account in the business.

Capital Account

An account on a nation's balance of payments that records all transactions involving the purchase or sale of assets, or in business, the account showing the net worth of a business entity.

Bonus

An extra payment given to employees as an incentive or reward beyond their regular compensation.