The Accounts Payable Controlling Account

question 10

Multiple Choice

The Accounts Payable controlling account:

• A) Equals the sum of all balances of supplier accounts.
• B) Reduces the number of entries in the general journals.
• C) Increases the number of columns in the journals.
• D) Stores the transaction data of individual supplies.
• E) Is not included in a company's chart of accounts.

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Definitions:

Recognized Gain

The amount of profit realized from the sale or exchange of an asset that must be reported for tax purposes.

Cash Distribution

The payment of cash to shareholders or partners as part of the profits or surplus.

Self-employment Income

Income derived from running a business as a sole proprietor, independent contractor, or freelancer, as opposed to earning a salary or wages from an employer.

Section 179 Expense

A section of the IRS tax code allowing businesses to deduct the full purchase price of qualifying equipment and/or software within a tax year.