When the Sum of All Entries in the Subsidiary Ledger

question 71

Multiple Choice

When the sum of all entries in the subsidiary ledger equals the balance in the corresponding general ledger account,it is assumed that

• A)the recording processes were accurate.
• B)all source documents were recorded.
• C)adjusting entries are not required.
• D)no errors exist in the subsidiary ledger.

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Definitions:

Relational Sources

Information about products or services that comes from personal relationships, such as friends, family, or colleagues.

Public Sources

Information available from non-confidential sources, such as government publications, libraries, and the Internet, that can be accessed by the general public.

Personal Sources

Individuals or personal contacts from whom one can obtain information, advice, or support, especially relevant in decision-making processes.

Evaluative Criteria

The standards or benchmarks that consumers use to compare and judge products or services during the decision-making process.