An Accounts Payable Subledger Is

question 65

Multiple Choice

An Accounts Payable subledger is

• A) A subsidiary ledger that contains an account for each supplier that grants credit to the company
• B) A list of the balances of all the accounts in the Accounts Receivable ledger that is added to show the total amount of accounts receivable outstanding
• C) A book of original entry that is designed and used for recording only a specified type of transaction
• D) The ledger that contains the financial statement accounts of a business
• E) A subsidiary ledger that contains a separate account for each customer that grants credit to the company

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Definitions:

Comparative Purposes

For comparative purposes entails analyzing financial statements or other data side by side to discern trends, effects of strategies, or performance over time.

Depreciation Expense

A charge that reflects the cost of using fixed assets over their useful life.

Plant Assets

Durable assets with physical form, employed in running a company and not meant for resale.

Year Ended

The conclusion of a 12-month accounting period, at which financial statements are prepared.