The Michael Company Has an Accounts Receivable Account in Its

question 4

Multiple Choice

The Michael Company has an accounts receivable account in its general ledger, and it also maintains a subsidiary ledger that contains an individual account for each of its customers who buys merchandise on credit. Which of the following statements about the general ledger account is not true?

• A) The general ledger account is also called a contra account.
• B) The balance of the general ledger account should agree with the total of all of the accounts in the subsidiary ledger.
• C) The general ledger account is called a permanent account.
• D) The general ledger account is properly referred to as a control account.

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Definitions:

Naïve Subjects

Individuals participating in a study or experiment who have no prior knowledge or expectations about the research being conducted.

Stanley Milgram

A psychologist known for his research on obedience, demonstrating people's willingness to follow the orders of an authority figure.

Original Obedience Study

Refers to the research conducted by Stanley Milgram in the 1960s, which investigated the extent to which individuals would follow orders from an authority figure, even when the orders were to administer electric shocks to another person.

Subjects

Participants in a research study.