A Subsidiary Ledger

question 9

Multiple Choice

A subsidiary ledger

• A)Is a listing of all of the accounts of a business.
• B)Is a listing of all accounts with balances.
• C)Includes transactions not covered by special journals.
• D)Is a listing of individual accounts with a common characteristic.
• E)Is a listing of all special journals.

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Definitions:

General Ledger

A comprehensive record of all financial transactions over the life of an organization, serving as the primary source for preparing financial statements.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Conversion Costs

The costs required to convert raw materials into finished products, which include labor costs and manufacturing overhead.

Direct Costs

Costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.