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:

Alarm System

A device or series of devices designed to alert individuals of potential danger, such as break-ins or fires, enhancing security and safety.

Expected Cost

The anticipated expense associated with an action or decision, often incorporating probabilities of various outcomes.

Profit Sharing

A company policy of distributing a portion of its profits among its employees, often as a form of incentive or reward.

Marginal Cost Function

A mathematical representation that shows how the cost of producing one additional unit of output varies as production changes.