The Customers Ledger and the Creditors Ledger Refer to Subsidiary

question 161

True/False

The customers ledger and the creditors ledger refer to subsidiary ledgers.

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Definitions:

Average Daily Float

This refers to the average amount of uncollected checks or electronic transfers in the process of clearing.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Collection Delay

The time lag between the date an entity issues an invoice and the date it actually receives payment.

Average Daily Receipts

The average amount of cash generated through sales or services rendered on a daily basis.