A Record That Contains the Details by Customer or Vendor

question 115

Multiple Choice

A record that contains the details by customer or vendor of the individual account balances would be called a:

• A)control account.
• B)subsidiary ledger.
• C)journal.
• D)liability account.

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Definitions:

Basic Accounting Equation

The fundamental equation representing the relationship between a company's assets, liabilities, and equity; Assets = Liabilities + Equity.

Assets

Resources owned by a company that have economic value and can be converted into cash.

Liabilities

Financial obligations or debts that a company owes to external parties.

Residual Equity

The amount of equity remaining for shareholders after all liabilities have been deducted from total assets.