A Subsidiary Ledger That Contains a Separate Account for Each

question 33

Multiple Choice

A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n) :

• A) Controlling account.
• B) Special journal.
• C) Accounts receivable ledger.
• D) General ledger.
• E) Accounts payable ledger.

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Definitions:

Operating Expenses

Costs related to the day-to-day functioning of a business, excluding the cost of production.

Product Costs

The costs directly associated with the production of goods, including raw materials, labor, and manufacturing overhead.

Indirect Costs

Expenses not directly tied to a specific product, service, project, or activity, typically including utilities, rent, and administrative salaries.

Cost Object

Any item for which costs are measured and assigned, including products, services, projects, activities, or customers.