Which of the Following Is True of an Accounts Receivable

question 101

Multiple Choice

Which of the following is true of an accounts receivable subsidiary ledger?

• A)It does not include a receivable account for each customer, but includes a cumulative account for all customers.
• B)It contains information about the amount each customer purchased on credit, but excludes the customer name.
• C)The total of the accounts in the accounts receivable subsidiary ledger must equal the accounts receivable balance in the general ledger.
• D)Companies keep an accounts payable subsidiary ledger that is entirely different than the accounts receivable subsidiary ledger.

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Definitions:

Personal Income Taxes

Taxes levied on individuals or households based on the income they earn within a given year.

Subsidies

Financial support granted by the government or a public body to help an industry or business keep the prices of a commodity or service low.

Automobile Purchases

The action or activity of buying vehicles intended for personal or commercial use on roads.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that is paid in taxes.