An Accounts Receivable Ledger Is

question 117

Multiple Choice

An accounts receivable ledger is:

• A) A subsidiary ledger that contains an account for each credit customer.
• B) A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding.
• C) A book of original entry that is designed and used for recording only a specified type of transaction.
• D) The ledger that contains the financial statement accounts of a business.
• E) A subsidiary ledger that contains a separate account for each creditor (supplier) to the company.

---

Definitions:

Financial Statement

Documents that provide an overview of a company's financial condition, including profit and loss statements, balance sheets, and statements of cash flows.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net income.

Interest Income

Income earned on various forms of investments like savings accounts, bonds, or loans, essentially any receivable that accumulates interest.

Debt Financing

Raising funds through borrowing, typically by issuing bonds or taking out loans, which entails repayment of principal and interest.