Describe the Purpose of Subsidiary and Control Accounts

question 101

Essay

Describe the purpose of subsidiary and control accounts.

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Definitions:

Investment

The operation of deploying resources, often financial, with the intention of earning returns.

Financial Transaction

An agreement, communication, or movement of funds between two parties that results in the exchange of financial instruments.

Disposable Income

Disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Typical Corporation

A standard business entity where ownership is divided into shares of stock, offering limited liability to its shareholders and being subject to corporate tax rates.