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:

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve and not lend out, aiming to ensure bank liquidity and stability.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, coins, and balances held in checking and savings accounts.

Required Reserve Ratio

is the fraction of deposits that banks are required to keep on hand as reserves, rather than loaning them out.

Money Supply

The total amount of money available in an economy, including cash, coins, and balances held in checking and savings accounts.