The Basic Purpose of a Subsidiary Ledger Is To

question 47

Multiple Choice

The basic purpose of a subsidiary ledger is to:

• A)Provide a chronological record of all business transactions.
• B)Provide details about the individual items comprising the balance of a general ledger account.
• C)Enable accountants to prepare financial statements.
• D)Provide persons outside of the organization with detailed information about the company's operations.

---

Definitions:

Vendor Section

A component of accounting or procurement software that manages information and transactions related to suppliers, including records of purchases, payments, and performance evaluations.

Create Invoice

An official document issued by a business to indicate a transaction and request payment from a customer.

Reports for Managers

Tailored financial or operational reports intended to assist managers in making informed decisions, planning strategies, and managing resources effectively within an organization.

Profitable Product

A good or service that generates a financial gain for a business, surpassing the costs associated with developing, producing, and marketing it.