The General Rule for Posting to a Subsidiary Ledger and Its

question 71

Multiple Choice

The general rule for posting to a subsidiary ledger and its controlling account is

• A) The controlling account is debited periodically for an amount or amounts equal to the sum of the debits to the subsidiary ledger
• B) The controlling account is credited periodically for an amount or amounts equal to the sum of the credits to the subsidiary ledger
• C) A trial balance ledger
• D) The controlling account is both debited and credited periodically for an amount or amounts equal to the sum of the debits or credits to the subsidiary ledger
• E) All of these

---

Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time frame.

Delta

A measure of how much the price of an option is expected to change based on a $1 change in the underlying asset.

Convertible Bonds

Bonds that can be converted into a predefined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Conversion Price

In finance, the Conversion Price is the predetermined price at which convertible securities can be exchanged for common shares of the issuing company.