A Ledger That Contains a Separate Account for Each Customer

question 168

Multiple Choice

A ledger that contains a separate account for each customer is called a:

• A) general ledger.
• B) trade ledger.
• C) control ledger.
• D) subsidiary ledger.

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Definitions:

Anchoring Bias

A cognitive bias where an individual depends too heavily on an initial piece of information (the "anchor") when making decisions.

Escalating Commitment

A behavioral pattern where an individual or organization continues to follow a failing course of action due to emotional attachment or the desire to justify prior investments.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making by reducing complex problem-solving to simpler judgment processes.

Cost-benefit Impact

An assessment that compares the costs involved in an action to the benefits derived from it, used to determine its overall value and feasibility.