Every Controlling Account Must Have Its Own

question 108

Multiple Choice

Every controlling account must have its own:

• A) primary ledger.
• B) general ledger.
• C) subsidiary ledger.
• D) general journal.

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Definitions:

Incorporation

Establishing a business entity as a corporation, which holds legal identity separate from its shareholders, enabling it to own property, sue, or be sued.

Advantages

Advantages refer to the beneficial factors or positive outcomes resulting from a specific action, decision, or situation.

Franchising

Arrangements based on contracts of service and the supply of products between larger and smaller units of one organization.

Personal Guarantee

A legal commitment by an individual to assume responsibility for another's debt or obligations if that party fails to fulfill them.