Which Statement Concerning the Accounts Payable Subsidiary Ledger Is Incorrect

question 4

Multiple Choice

Which statement concerning the accounts payable subsidiary ledger is incorrect?

• A)The postings from the purchases journal are to the credit of the individual subsidiary ledger accounts.
• B)The debit entries equal the credit entries.
• C)It keeps track of amounts owing to individual creditors.
• D)None of the above are incorrect, i.e. all are correct statements.

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Definitions:

Granddaughter

A female grandchild, being the daughter of one's son or daughter.

Compound Interest

Interest calculated on both the original amount of money either loaned or deposited, as well as on the interest that has already been added to it from earlier periods.

Interest on Interest

The interest earned on the reinvestment of previous interest payments, often seen in compound interest scenarios.