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.

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Definitions:

Tax-Free

Income, dividends, or distributions that are not subject to federal income tax.

Formed Corporation

A business entity that is legally created and registered under state law, offering liability protection to its owners.

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An agreement or exchange between two parties involving goods, services, or financial assets.

Schedule L

Used to provide additional details on financial status or transactions not captured in the main tax form; no longer in general use for most taxpayers.