A Major Advantage of Controlling Accounts Is That Their Use

question 10

Multiple Choice

A major advantage of controlling accounts is that their use makes it possible to reduce the number of

• A) entries in subsidiary ledgers.
• B) columns in special journals.
• C) accounts in the general ledger.
• D) all of these.
• E) none of these.

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Definitions:

Nominal Interest Rate

The stated interest rate of a bond or loan, not adjusted for inflation, representing the actual annual cost of borrowing.

Compounded Quarterly

The process where interest is calculated and added to the principal sum of an investment or loan on a quarterly basis.

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Annually

Occurring once every year.