The Accounts Receivable Account in the General Ledger Serves as a Control

question 107

True/False

The accounts receivable account in the general ledger serves as a control account because it summarizes the total of the receivables from all customers.

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Definitions:

Sell

The act of giving or handing over something in exchange for money or other compensation.

Premium

An amount paid regularly to insure something or to cover the cost of a policy, also used to describe the amount paid over the nominal value of something.

Bonds

Long-term debt securities issued by corporations and government entities that pay interest to the holder.

Contract Rate

A pre-agreed interest rate applied in the calculation of payments for a specific financial contract.