A Ledger

question 22

Multiple Choice

A ledger:

• A)is where transactions are initially recorded.
• B)is where transactions are posted to after they are initially recorded.
• C)is the same as a chart of accounts, with each account numbered to facilitate frequent references that are made to it.
• D)is the same as a source document, such as an invoice from a supplier or a copy of a credit purchase made by a customer.

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Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries.

Parent's Control

Parent's control refers to the influence or authority that a parent company holds over its subsidiaries, managing or directing their operations and strategic decisions.

Subsidiaries

Subsidiaries are companies that are controlled by another company, known as the parent company, through majority ownership of shares.