Each General Ledger Control Account Balance Must Equal the Composite

question 121

True/False

Each general ledger control account balance must equal the composite balance of the individual accounts in the related subsidiary ledger at the end of an accounting period.

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Definitions:

Stock

Shares of ownership in a company, representing a claim on the company's assets and earnings.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Board of Directors

Members selected by the corporation's shareholders to govern and decide on important matters concerning the company's administration.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.