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Marcus Likes to Drink Beer, and He Loves to Drive

question 27

Multiple Choice

Marcus likes to drink beer, and he loves to drive fast. He knows that it is generally dangerous for other people to drink and drive, but he believes he is an especially skillful driver and can do so without risk of injury. Which one of the following concepts best helps us explain Marcus's behavior?


Definitions:

Accounts Receivable Subsidiary Ledger

A detailed record showing the individual transactions and balances for customers who owe the company money, supporting the summary balances shown in the general ledger.

Controlling Account

An account in the general ledger that summarizes the total balances of all individual accounts in a subsidiary ledger.

Schedule Of Accounts Receivable

A list of the customers, in alphabetical order, that have an outstanding balance in the accounts receivable subsidiary ledger. This total should be equal to the balance of the Accounts Receivable controlling account in the general ledger at the end of the month.

Control Account

A summary account in the general ledger that consolidates and reflects the total of transactions recorded in subsidiary ledgers.

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