Which One of the Following Statements Is True

question 135

Multiple Choice

Which one of the following statements is true?

• A)When a company uses a subsidiary ledger,the balance in the control account,Accounts Receivable,shows only the amount the company expects to collect from the accounts receivable,net of any expected uncollectible accounts.
• B)An accounts receivable subsidiary ledger represents amounts due to vendors and suppliers.
• C)The balance in the control account,Accounts Receivable,should be equal to the sum of the balances in the subsidiary ledger for accounts receivable.
• D)A subsidiary ledger takes the place of the control account for some companies.

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Definitions:

Labor Hours

Labor hours refer to the total number of hours worked by employees within a given period, used as a measure of labor input in production processes.

Isoquant

A curve that represents all the combinations of inputs that result in the production of a certain level of output, suggesting input substitutability in the production process.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to produce goods and services and create wealth.

Labor

The use of human labor, be it physical or intellectual, in generating goods and services.