The Crown Trust Distributed One-Half of Its Accounting Income to Lee

question 143

True/False

The Crown Trust distributed one-half of its accounting income to Lee this year. Lee also is allocated one-half of
Crown's credit for building low-income housing.

---

Definitions:

Normal Balance

The usual balance of an accounting account, either a debit for assets and expenses or a credit for liabilities, equity, and income.

Account Category

A classification for financial transactions that helps in organizing and reporting them in the financial statements, such as assets, liabilities, equity, revenues, and expenses.

Accounts Receivable Subsidiary Ledger

A detailed record that tracks individual balances owed by customers, supporting the total accounts receivable balance listed on the general ledger.

Accounts Payable Subsidiary Ledger

A detailed ledger breaking down accounts payable into individual supplier accounts, assisting in tracking what is owed to each creditor.