Z Company Uses a Subsidiary Ledger and Control Account System

question 37

Multiple Choice

Z Company uses a subsidiary ledger and control account system for its accounts receivable.At the end of the accounting period a listing of customers' accounts is prepared from the subsidiary ledger.The purpose of this listing is to:

• A)Furnish the amount that should be posted to the accounts receivable control account
• B)Determine whether the debits equal the credits in the subsidiary ledger
• C)Prove that the subsidiary ledger agrees with the control account
• D)Provide information necessary for trial balance preparation

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Definitions:

Magnetic Tapes

A data storage medium that uses a magnetizable coating on a long, narrow strip of plastic film to record audio, video, or data.

Capacity

The maximum amount that something can contain or produce, often referring to businesses or production facilities.

Cache Memory

A type of fast, temporary storage in computing devices designed to speed up the retrieval of data by storing copies of frequently accessed information.

Registers

In computing, small, fast storage locations within the CPU that hold data to be processed, instructions for the processor, or the address of the next instruction.