A Subsidiary Ledger That Contains a Separate Account for Each

question 42

Multiple Choice

A subsidiary ledger that contains a separate account for each party that grants credit on account to the business is called a(n)

• A) Controlling account
• B) Accounts Receivable Ledger
• C) Accounts Payable Ledger
• D) Merchandise Inventory Ledger
• E) Accounts Payable

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Definitions:

Overhead Activities

Tasks or operations that incur indirect costs, which are not directly attributable to a specific product or service.

Activity Cost

The cost associated with a specific activity or process in the production or delivery of goods and services.

Activity Driver

An activity driver is a factor in activity-based costing that influences the costs of an activity, helping allocate costs more accurately to products or services.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, promoting more accurate cost management.