An Organization Will Typically Utilize a Subsidiary Ledger to

question 33

Multiple Choice

An organization will typically utilize a subsidiary ledger to

• A)make sure all debits equal credits
• B)make it easier to handle cash received from customers
• C)keep customer accounts up to date
• D)record customer credit sales outside of the normal double entry system

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Definitions:

Specific Identification Method

An inventory valuation method that tracks the actual cost of each individual item of inventory.

Inventory Accounting

The process of valuing a company's inventory, including raw materials, work-in-progress, and finished goods.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold or used first.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.