A Control Account ________

question 73

Multiple Choice

A control account ________.

• A) does not appear on the balance sheet
• B) has a balance that equals the sum of the balances in a group of related accounts in a subsidiary ledger
• C) is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements
• D) holds individual accounts that support a general ledger account

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent and salaries, remaining constant over a period.

Monthly Advertising Budget

A planned amount of money dedicated to promoting a company's products or services for a month.

Sales Commissions

Payments made to sales staff based on the value or volume of sales generated.

Fixed Expenses

Expenses that remain constant regardless of the amount of output or sales, including rent, salaries, and insurance costs.