Drawers of Checks and Drafts Have Secondary Liability on the Instruments

question 16

True/False

Drawers of checks and drafts have secondary liability on the instruments.

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Definitions:

Controlling Account

A controlling account is a summary account in the general ledger that consolidates and reflects the total balance of all subsidiary accounts related to it.

General Ledger

The primary accounting record used to track all of a company's financial transactions, summarized from subsidiary ledgers.

Revenue Journal

An accounting journal used to record the company's revenue transactions systematically.

Office Equipment

Fixed assets intended for use over a long period of time for the purpose of performing office-related tasks.