Which of the Following Statements Is True About Control Accounts

question 22

Multiple Choice

Which of the following statements is true about control accounts?

• A)control accounts are used to control amounts spent during the year
• B)control account totals must equal the total of the individual subsidiary accounts
• C)control accounts are used to limit the amounts of liabilities incurred during the year
• D)control accounts avoid the need for making postings to ledgers.

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Definitions:

Goals And Incentives

Objectives set by an organization to guide its actions and the motivational tools or rewards used to encourage desired behaviors among its stakeholders.

Supply Chain Coordination

Aligning and integrating the activities among all participants in the supply chain to improve efficiency and responsiveness to market demands.

Product Visibility

The ability to track and view the status and location of products throughout the supply chain, from production to delivery.

Order Synchronization

The coordination of all activities involved in fulfilling customer orders, ensuring that each component arrives at the right place and time for final assembly and shipment.