The Balance of a Control Account in the General Ledger

question 109

Multiple Choice

The balance of a control account in the general ledger

• A) must always be zero.
• B) must equal the amount of total assets.
• C) is always greater than the composite balance of individual accounts in a related subsidiary ledger.
• D) must equal the composite balance of individual accounts in a related subsidiary ledger.

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Definitions:

Factor Portfolio

An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.

Unsystematic Risk

The risk associated with a specific issuer of a security, such as a company's management decisions or financial health, distinct from market-wide risks.

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Beta Over Time

A metric that evaluates the volatility of an asset or portfolio in comparison to the market as a whole, observed across different time periods.