The Accounts Payable Subsidiary Ledger

question 41

Multiple Choice

The accounts payable subsidiary ledger:

• A) lists accounts alphabetically.
• B) lists accounts for which the company owes money.
• C) has a controlling account in the general ledger.
• D) All of the above are correct.

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Definitions:

Capitalization

Refers to the total amount of a company's outstanding shares multiplied by the current market price of one share.

Commence Business

The act of starting operations or activities of a business upon completing necessary legal and regulatory steps.

Common Law

A collection of law not codified but derived from court decisions and judicial rulings.

Legal Entity

An organization or structure that holds legal rights and obligations, distinct from its members or owners, such as a corporation, partnership, or trust.