Which of the Following Statements About Subsidiary Ledgers Is Most

question 52

Multiple Choice

Which of the following statements about subsidiary ledgers is most accurate?

• A) The subsidiary ledger accounts will never equal the control account in the general ledger.
• B) The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.
• C) The subsidiary ledger accounts will equal the amount of cash sales.
• D) All of these answers are correct.

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Definitions:

Trial Balance

A financial statement that lists all the balances of a company's general ledger accounts at a specific point in time, ensuring that debits equal credits.

Transactions

Actions or activities conducted by a company that affect its financial statements, such as sales, purchases, and payments.

Transposition Error

A specific type of accounting error caused by switching the order of digits in a number, often leading to discrepancies in financial records.

Debit Column

Refers to the section in accounting records where decreases in liabilities, or increases in assets and expenses are logged.