A Subsidiary Ledger That Contains a Separate Account for Each

question 81

Multiple Choice

A subsidiary ledger that contains a separate account for each party that grants credit onaccount to the business is called a(n) :

• A)Accounts Receivable Ledger.
• B)Merchandise Inventory Ledger.
• C)Controlling account.
• D)Accounts Payable.
• E)Accounts Payable Ledger.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's assets.

Withdrawal

A withdrawal refers to the act of removing funds from a bank account, investment, or trust.

Expense

Expense refers to the outflow of money or other assets, incurred in the process of generating revenue, including costs like rent, salaries, and utilities.

Expenses

Costs incurred in the process of generating revenues, including operating costs, taxes, and interest payments.