Preston Ltd Uses a Subsidiary Ledger and Control Account System

question 40

Multiple Choice

Preston Ltd uses a subsidiary ledger and control account system for its accounts receivable. At the end of the accounting period a listing of customers' accounts is prepared from the subsidiary ledger. The purpose of this listing is to:

• A) furnish the amount that should be posted to the accounts receivable control account.
• B) determine whether the debits equal the credits in the subsidiary ledger.
• C) prove that the subsidiary ledger agrees with the control account.
• D) provide information necessary for trial balance preparation.

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