A Subsidiary Ledger Frees the General Ledger from Details of

question 52

Multiple Choice

A subsidiary ledger frees the general ledger from details of

• A) individual balances.
• B) external transactions.
• C) internal transactions.
• D) the control account.

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Definitions:

Holders of Record

Registered owners of securities at a specific time who are entitled to receive dividends or distributions announced by a company.

Dividend Payable

A liability recorded on a company's balance sheet for the dividends declared by the board of directors that have not yet been paid out to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company doesn't change.

Book Value

The net value of a company's assets minus its liabilities, often used to evaluate its financial health.