The Control Account for Receivables Has a Balance of $150

question 18

True/False

The control account for receivables has a balance of $150 000. The receivables ledger account has a debit balance of $150 000. This agreement shows that the account is error free.

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Definitions:

Supplies Expense

The cost incurred from using supplies during an accounting period, recognized as an expense.

Net Income

The total profit of a business after all expenses and taxes have been subtracted from total revenue.

Inventory

Items that are held by a company for the purpose of selling in the near future or the materials used to produce those goods.

Supplies

Tangible items used in the operation of a business that are not directly associated with the product or service offered.