Wrigley Ltd Uses Subsidiary Ledgers for Debtors and Creditors

question 11

Multiple Choice

Wrigley Ltd uses subsidiary ledgers for debtors and creditors. At 1 July 2015 debtors owed $7000 and creditors were owed $4000. Transactions for year ended 30 June 2016 were as follows:

What was the balance of the creditors control account at 30 June 2016?

• A) $11 500
• B) $6500
• C) $5500
• D) $6000

Identify the reasons and typical scenarios under which shareholders might initiate litigation.

Grasp the various types of disclosure costs and their implications on financial reporting.

Comprehend the significance of timely financial information and its impact on decision-making.

Recognize the goals of GAAP in financial reporting and understand its importance.

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Definitions:

Irrationality

The act of behaving or making decisions that lack reason or logical thinking.

Fanaticism

Extreme zeal or enthusiasm, often to the point of irrationality, in support of a cause or belief.

USA PATRIOT Act

Legislation passed in response to the September 11, 2001, terrorist attacks aiming to strengthen U.S. counterterrorism efforts by enhancing law enforcement investigatory tools.