To Prove the Subsidiary Ledger Agrees with the Accounts Payable

question 58

Multiple Choice

To prove the subsidiary ledger agrees with the Accounts Payable controlling account balance, complete a

• A) debit memorandum.
• B) schedule of accounts payable.
• C) purchase order.
• D) schedule of accounts receivable.

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Definitions:

Trial Balance

An accounting report that lists the balances of all ledgers in two columns, debits and credits, ensuring that total debits equal total credits.

Debit Balances

Accounts with a balance that represents amounts owed or expenses; typically assets and expenses accounts.

Financial Statement Order

The sequence in which financial statements are prepared and presented, typically starting with the income statement, followed by the statement of financial position, and so on.

Financial Ratios

Quantitative measures derived from financial statement analysis to evaluate the financial health of a company.