Subsidiary Ledgers

question 26

Multiple Choice

Subsidiary ledgers

• A) are used only for Accounts Payable and Accounts Receivable
• B) may be used for various ledger accounts
• C) may be used for only for the Cash account
• D) are never used for more than four accounts

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Definitions:

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them owners of a portion of the company.

Statement of Retained Earnings

A financial statement that outlines the changes in retained earnings for a specified period.

Net Income

The total earnings of a company after subtracting all expenses from revenue, indicating the company's profit.

Dividends

Dividends are a portion of a company's earnings that are distributed to shareholders as a reward for their investment in the company.