Which of the Following Is TRUE of an Accounts Receivable

question 102

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 from the accounts receivable subsidiary ledger.

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Definitions:

Effluent Dumping

The discharge of pollutants or waste materials into the environment, particularly into water bodies, without adequate treatment.

Profit-Maximizing Firm

A business entity whose primary goal is to achieve the highest possible level of profit through its operations and decisions.

Emissions

The act of releasing substances, such as greenhouse gases, pollutants, or radiation, into the environment, typically the air.

MSB Curve

A graph showing the marginal social benefit of producing one more unit of a good or service, considering both private and external benefits.