Which of the Following Statements About Subsidiary Ledgers and Control

question 14

Multiple Choice

Which of the following statements about subsidiary ledgers and control accounts is NOT true?

• A) Every entry made to an account in the subsidiary ledger is also reflected in the control account in the general ledger.
• B) All credit entries will be the same in aggregate between the subsidiary ledger and the control account.
• C) The total of the balances appearing in the accounts in the subsidiary ledger should equal the balance appearing in the control account.
• D) If the total of the subsidiary ledger accounts fails to agree with the balance of the control account,the subsidiary ledger must be in error.

---

Definitions:

Standards

Criteria or benchmarks used for measuring performance or quality in various fields, including manufacturing, auditing, and accounting.

Actual Information

Factual data or evidence that is true and accurate, without alteration or distortion.

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the estimated quantity expected to be used, measured in terms of cost.

Direct Materials Purchases Variance

This measures the difference between the actual cost of direct materials purchased and the expected (or standard) cost of those materials.