Describe the Role of a Balancing Item or "Plug" in Financial

question 95

Essay

Describe the role of a balancing item or "plug" in financial planning.

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Definitions:

Special Journal

A specialized accounting journal used to record and post transactions of a similar type.

Subsidiary Ledger

A detailed ledger that provides a breakdown of transactions relating to a specific account, which then rolls up into the general ledger.

Usefulness

Usefulness in a business context often refers to the degree to which information or data meets the needs of its users, enabling informed decision-making.

General Journal

A book or electronic record in accounting where transactions are entered before they are posted to individual accounts.