The Accounts Payable Controlling Account

question 69

Multiple Choice

The Accounts Payable controlling account:

• A)Is not included in a company's chart of accounts.
• B)Stores the transaction data of individual supplies.
• C)Reduces the number of entries in the general journals.
• D)Equals the sum of all balances of supplier accounts.
• E)Increases the number of columns in the journals.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders.

Debt Refunding

The process of replacing an existing debt obligation with a new one, often with more favorable terms.

Ordinary Income

Earnings derived from standard business operations and not classified as capital gains or dividend income.

Extraordinary Income

Uncommon and infrequent gains not related to the normal operations of a business.