Which of the Following Is Not an Advantage of a Subsidiary

question 90

Multiple Choice

Which of the following is not an advantage of a subsidiary ledger?

• A) Shows transactions affecting one customer or one creditor in a single account.
• B) Helps locate errors in individual accounts.
• C) Puts greater detail in the general ledger.
• D) Makes possible a division of labor.

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Definitions:

Cash Payback Period

The duration it takes for the earnings from an investment to cover the initial amount invested.

Annual Net Cash Flows

The total amount of money, including inflows minus outflows, that a business generates over one year.

Expected Total Cash Flows

The projection of all the cash that is anticipated to be received or paid out over a certain period of time in the future.

Cash Payback Period

The time period required for the returns from an investment to repay the initial capital outlay.