Which of the Following Accounts Normally Has a Subsidiary Ledger

question 41

Multiple Choice

Which of the following accounts normally has a subsidiary ledger?

• A) capital stock
• B) retained earnings
• C) supplies
• D) accounts payable

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Definitions:

Merchandise Inventory

Goods that a retail merchandising business holds for sale to customers.

Periodic Inventory System

An inventory system that records inventory purchase or sales at the end of a period rather than after each transaction.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Merchandise Inventory

The goods a company has in stock that are ready to be sold, representing one of the primary sources of revenue for retail and wholesale businesses.