The Chart of Account for the Miguel Company Includes Some

question 171

Multiple Choice

The chart of account for the Miguel Company includes some of the following accounts: $\begin{array}{|l|l|}\hline \text { Account Name } & \text { Account Number } \\\hline \text { Cash } & 11 \\\hline \text { Accounts Receivable } & 13 \\\hline \text { Prepaid Insurance } & 15 \\\hline \text { Accounts Payable } & 21 \\\hline \text { Unamed Revenue } & 24 \\\hline \text { Miguel, Capital } & 31 \\\hline \text { Miguel, Drawing } & 32 \\\hline \text { Fees Earned } & 41 \\\hline \text { Salaries Expense } & 54 \\\hline \text { Rent Expense } & 56 \\\hline & \\\end{array}$ On the journal page 5, the following transaction was found:
$$\begin{array} { | l | l | l | } \hline \text { Sularies Expenses } & 525 & \\\hline \text { Cash } & & 525 \\\hline & & \\\end{array}$$ What is the post reference that will be found on the Salaries Expense account?

• A) 5
• B) 11
• C) 54
• D) None

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Definitions:

Subsidiary

A company controlled by another company, often referred to as the parent company, through ownership of a majority of its voting stock.

Sub-subsidiary

A company controlled by a subsidiary of another company, creating a tiered structure of corporate ownership and governance.

Subsidiary Company

A company that is controlled by another company, usually referred to as the parent company, through ownership of more than half of its voting stock.

Parent Company

A corporation that owns controlling interest in one or more other companies, referred to as subsidiaries.