Subsidiary Ledgers

question 170

Multiple Choice

Subsidiary ledgers

• A) are used only for Accounts Payable and Accounts Receivable
• B) may be used for various general ledger accounts
• C) may be used only for the cash account
• D) are never used for more than four accounts

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Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, which may bear no relation to its market value.

Dividends Distributed

The total amount of dividends that have been given out to shareholders over a specified period.

Cumulative

Referring to the total amount accumulated over time, often used in the context of dividends, earnings, or effects that are added together continuously.

Nonparticipating

A term often used in insurance to describe policies that do not grant the policyholder dividends from the insurer's profits.