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.

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Definitions:

Subsidies

Financial support extended by the government to stimulate an industry or reduce the prices of goods and services for consumers.

MBA Degree

A Master of Business Administration degree, a graduate-level education that focuses on the theoretical and practical aspects of business and management.

Externalities

Economic side effects or by-products that affect uninvolved third parties; can be negative (like pollution) or positive (like education benefits), and are not reflected in market prices.

Property Rights

Legal rights to own, use, and dispose of assets or resources, playing a critical role in determining the allocation and use of resources in an economy.